Thames Water hit with £73m penalty over pollution and leakages
Thames Water will be forced to pay £73.7m back to customers for failing to meet performance targets.
Water industry regulator Ofwat confirmed this morning that after a period of industry consultation, 12 out of the UK’s 17 water firms, including Thames Water, will face fines for missing targets around reducing pollution, leakage and supply interruptions.
In total, the 12 firms will have to return around £193m to customers, partially offset by five firms charging about £123m more, resulting in a net total of £70m being paid out.
The fines for under-performing suppliers will be passed onto customers through lower bills in 2024 and 2025.
Thames Water’s penalty was significantly more than the next most heavily-fined firm Anglian Water, which was ordered to hand back £27.1m.
Other providers ordered to return customer funds include Welsh provider Dŵr Cymru (£24m), Southern Water (£21m) and Yorkshire Water (£19.8m).
Thames Water’s penalty represents a huge markdown from the £114m previously slated by Ofwat in its initial report in September.
A spokesperson for Ofwat said the action “highlights the need for companies to focus on regaining public trust, by providing better service for customers and the environment.”
A spokesperson for Thames Water said: “Our customers expect a great service from us every time, and we’re sorry when we fail to deliver at the first opportunity.
“We’re making progress and we’ll continue to engage and work with Ofwat as we implement our plan, we’re determined to do better for our customers and the environment.”
The penalty against the firm comes as Thames Water scrambles to secure more funds for its turnaround plan and tame its mounting £14bn debt pile.