IB 16/14: Ofwat confirms Thames Water’s package for customers

Ofwat has today confirmed Thames Water’s agreement to pay a package worth £86 million to customers and the communities it serves, following Ofwat’s investigation into the company’s misreporting of sewer flooding data in 2010.

Ofwat has published a notice imposing a nominal penalty of £1 on Thames Water after consulting on this action in June 2014.

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Notes to editors

 

  1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will protect the interests of consumers, promote value and safeguard future water and sewerage services by allowing efficient companies to carry out their functions properly, and finance them.
  2. Thames has committed to accepting a reduction in its regulatory capital value (RCV) of £79 million, which will benefit customers for years to come. Thames will also give back £7 million to customers and the community by:
    • putting an additional £2 million into its independently managed Thames Water Trust Fund, to assist customers who are having difficulty paying their bills; and
    • investing £5 million to support additional community projects such as local programmes to better protect rivers and improve the natural environment.
  3. The RCV is a regulatory accounting figure which includes the asset costs and investment that has been put into the water company. It is used for setting bills. By reducing it, bills will be lower.
  4. Media enquiries to Ofwat Press Office on:
    Benedict Fisher 0121 644 7642 / [email protected]
    Harbinder Babra 0121 644 7616 / [email protected]