Source: Sharecast
Earlier this year, Thames Water asked regulator Ofwat to refer its final decision on how much the utility could put up customer bills to the Competition and Markets Authority.
Heavily-indebted Thames Water wants to hike prices by more than Ofwat has permitted, arguing that the regulator’s proposed increase is not enough to support investment plans.
The requested referral to the CMA, however, has already been deferred twice, as discussions with creditors continued, and on Tuesday Thames Water confirmed it would now be deferred for a third time.
It said: "Discussions between Thames Water’s senior creditors, the London and Valley Water consortium, Ofwat and other regulators in relation to a potential market-led solution to the recapitalisation of the company are continuing.
"Thames Water and Ofwat have agreed a further deferral of the reference, which will provide an opportunity for these discussions to continue in the coming weeks."
It added that no deadline had been set for the deferral period, in contrast to the previous delays.
However, it reiterated: "This deferral is not a withdrawal of the request for the reference, and Thames Water remains of the view that the final determination does not serve the interests of Thames Water’s customers, communities and the environment."
Thames Water has long been criticised for paying out dividends and building up vast debts while failing to invest in its aging infrastructure, leading to multiple sewage spills and leaks.
Now battling to avoid renationalisation, it has been teetering on the brink of collapse since March 2024, when its owners - a group of overseas pension and sovereign funds - walked away, calling the business "uninvestable".
The turnaround proposal from London and Valley Water - a group of the utility’s largest investors - is currently being reviewed by regulators.
Around a third of Thames Water’s £20bn debt pile will be wiped out should the plan get the green light, with around £5.4bn of new equity injected to help stabilise finances. In return, the senior creditors are seeking more lenient environment targets from Ofwat.
