Thames Water funding woes deepen after shareholders pull investment plan

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The Reading-based firm which serves 16 million customers across the Thames Valley and London said it was in ongoing talks with industry regulator Ofwat.

Troubled utility Thames Water has said its shareholders will not be injecting the first £500 million of funding that was agreed last summer into the group as industry regulations make its business plan “uninvestible”.

“The first £500 million of the new equity that had been anticipated will not be provided by Thames Water’s shareholders by 31 March 2024,” it revealed. The firm said once the new regulatory plan is agreed with Ofwat, it “intends to pursue all options to secure the required equity investment from new or existing shareholders”.Thames Water 'on the brink of collapse' as it faces £14bn of debt

But it is understood that Ofwat has refused to bow to the water giant’s demands for concessions, said to include a 40% bill hike for customers, an easing of capital spending requirements as well as leniency on regulatory penalties.

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