THAMES WATER UNDER INVESTIGATION FOR DELAYED ENVIRONMENTAL PROJECTS – The probe will determine whether the company has breached its legal obligation
Thames Water is under investigation by industry regulator Ofwat for failing to meet deadlines on environmental improvement projects. The probe will determine whether the company, which is struggling under a £19 billion debt, has breached its legal obligations.
Thames Water recently alerted Ofwat and the Environment Agency that it is unlikely to complete over 100 of the 812 projects promised under the Water Industry National Environmental Programme (WINEP) by the March 31 deadline. These projects, part of the 2020-2025 pricing period, include upgrades to storm overflows aimed at reducing sewage spills.
With customers facing above-inflation bill increases from April to fund further infrastructure improvements, the regulator has the power to fine Thames Water up to 10% of its annual turnover. The company has already faced hefty penalties, including an £18 million fine in December for breaking shareholder payout rules and a £104 million penalty last summer for sewage-related failures.
