Thames Water is facing a financial crisis and has lobbied the government to intervene with the regulator to raise bills by 59%. The company’s attempts to convince the government to pressure Ofwat is seen as a desperate move to repair its finances. Thames believes a bill increase is necessary for its survival, but Ofwat has suggested a more reasonable 22% increase. The company’s financial troubles have led to discussions within the government, with some advocating for a deep overhaul. The situation also sheds light on the stewardship of the company by Macquarie, criticized for building large debts while paying dividends to shareholders.
Water UK has warned that unless all water companies are allowed to raise bills, it could hinder their ability to attract investment, putting necessary improvements at risk. The industry is looking to invest £105 billion to support growth, secure water supplies, and end environmental harm caused by sewage. Ofwat is reviewing proposals for future water bills and will make final decisions in December.
The government remains stable and committed to addressing environmental concerns related to water management. The ongoing crisis at Thames Water highlights the challenges and complexities facing the water sector in the UK.
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