Commenting on this morning’s news that Thames Water’s shareholders have agreed to invest an additional £500m of equity into the business, with the prospect of a further £1bn of equity to follow subject to performance milestones, Ofwat’s Chair, Jonson Cox, said:
“We have been working hard to get all water companies to ensure they have robust financial resilience so they have the stability needed to fulfil their current and long-term obligations and meet the expectations of their customers.
“We welcome this injection of extra equity by investors as a signal of Thames Water’s intent to get their house in order. We also welcome the increase in expenditure over the five year period to 2025, from £9.6bn to £11.5bn, to help improve performance and accelerate the company’s turnaround.
“Our discussions over the last year with Thames Water’s chair, Ian Marchant, and CEO, Sarah Bentley, about the need to strengthen the company’s financial resilience have been constructive. Thames Water still has many issues to address to meet the service and resilience levels we expect, but seeing its shareholders putting in additional investment will help the management team to make the progress needed to deliver on its transformation plan.”
This is the second major additional investment into a water company over the past year, following the announcement that Southern Water secured extra investment of £1bn to help transform their performance.