Thames Water’s annual results have raised some eyebrows this week, as they suggest the company only has sufficient funding to operate until May 2025.
The results have raised fears over its potential collapse, unless investors provide additional funds.
In light of concerns about Thames, Ofwat has published an Information note on Thames Water’s draft determination. The regulator is placing Thames in a Turnaround Oversight Regime. This will include:
- a requirement to provide a ‘delivery action plan’ which sets out the actions the company proposes to take to expand its delivery capacity. The company must report on its progress regularly, subject to review and additional scrutiny by an independent third-party assurance provider;
- a requirement for the company to fully re-evaluate its plans for transformation in order to demonstrate how it will deliver the necessary step change in operational performance;
- a requirement for the company to provide a financial resilience plan in response to the draft determinations. We will continue to monitor and engage with the company on its financial resilience.
Covered in
The Guardian: Thames Water to tap investors for funds as it will run out of cash by next June
WaterBriefing: Thames Water – debts increase as firm warns it will run out of funds by end May 2025