Thames Water reports surge in pollution incidents as debts swell
Thames Water saw a 40 per cent increase in pollution incidents in the first half of its financial year as its debts continued to spiral.
The company reported 359 so-called category one to three pollution incidents in the six months to September 30, blaming an especially wet spring and summer.
Debt levels were £15.8bn at the end of the period, before the company agreed a £3bn extra loan deal to keep it operating beyond mid-2025.
Chief executive Chris Weston said the company has made “solid progress” on its attempted turnaround, but that after “record rainfall and groundwater levels in our region, pollutions and spills are unfortunately up”.
He added that the company has reached “key milestones in establishing a more stable financial platform, agreeing a liquidity extension transaction proposal and progressing our equity raise process”.
“The next critical step is receiving an investable final determination (from regulator Ofwat) which is fundamental to our future,” he added.
Thames Water has been at the centre of growing public outrage over the extent of pollution, rising bills, high dividends, and executive pay and bonuses at the UK’s privatised water firms.
It recently asked regulator Ofwat to let it raise average bills by 59 per cent over the next five years, compared with current levels.
The company, which serves about 16 million people, is in the grip of a funding crisis, and needs at least £3.3bn in equity over the next five years to keep operating.
Thames Water is also the subject of bids by several investment groups who are looking to buy the company out.
But the process for an equity injection cannot be finalised until Ofwat makes a final decision on planned bill increases, due on December 19.
Ofwat has also appointed an independent monitor to supervise Thames Water as it attempts a turnaround.
Reporting by PA, Alex Daniel