Thames Water is being investigated after it delayed environmental improvement schemes (Image: Getty)
is being investigated after it delayed environmental improvement schemes, the industry regulator has announced.
Ofwat, water regulator for England and , says the enforcement case against the company aimed to determine whether it has breached its obligations in failing to deliver 100 out of 812 schemes it was supposed to put in place between 2020 and 2025.
The UK’s largest water company is currently grappling with a £19bn debt pile and has warned it will run out of money as early as March.
Laden with debt, Thames Water is currently seeking approval from the court for a restructuring deal with existing creditors that would provide £1.5bn in immediate financing, potentially rising to £3bn, to stave off collapse by the end of March.
Laden with debt Thames Water is currently grappling with a £19bn debt pile (Image: Getty)
The watchdog said the company, which takes care of water for 16 million people, had been in contact to alert it and the Environment Agency that it will unlikely deliver more than 100 of the 812 improvements it had promised by a March 31 deadline.
The regulator issued Thames Water a warning that they will use their “full range of powers” to hold the company to account if obligations are found to be breached.
Lynn Parker, Ofwat’s senior director for enforcement, said: “Customers have paid for Thames Water to carry out these essential environmental schemes.
“We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations.
“If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right.”
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The regulator has the power to fine the relevant part of the business up to 10% of its annual turnover.
Last December Thames Water was slapped with a £18m fine for breaking shareholder payout rules.
A Thames Water spokesperson said: “We note Ofwat’s decision to open an enforcement case into the delayed delivery of Winep7 and will cooperate fully. Customers will not pay twice for investment that has already been funded through customer bills.
“We’ve been very open about the challenges of delivering all the elements of our Winep7 programme, which has been impacted by cost increases that are higher than the inflation index applied to our allowances. We informed Ofwat of this in August 2023. We remain committed to delivering all our Winep commitments.”