Thames Water has proposed an increase in customer water bills by £228 a year to fund necessary investments in infrastructure.
The company argues that this rise is essential to address longstanding issues and meet future demands.
In a statement, Thames Water highlighted that the planned bill increase, averaging £18.99 per month, would support improvements to water and wastewater services.
The company also emphasised that it aims to support customers who may struggle to pay the higher bills.
Thames Water expressed concern over Ofwat’s draft determination, which proposes a 25% reduction in the company’s expenditure plans.
The company warned that such cuts would make its business plan unviable, potentially leaving a significant funding gap and hindering necessary infrastructure upgrades.
Chris Weston, Chief Executive Officer Thames Water, said: “On the basis of the draft determination given to us by Ofwat, both our own and independent analysis shows that our plan would be neither financeable nor investible and therefore not deliverable.
“It would also prevent the turnaround and recovery of the company.
“We have listened carefully to Ofwat’s feedback and have responded constructively to address the issues raised, updating our plan to reflect stretching goals, while offering changes that would give us the opportunity to secure the necessary investment so that our ambitious plan can be delivered for our customers and the environment.”
Sir Adrian Montague, Chairman of Thames Water said: “After decades of focusing on keeping bills low, now is the time for difficult choices.
“It’s the responsibility of the company, our regulators and the government to seek solutions in the best interests of customers and the environment.”
