Thames Water’s chief executive has not ruled out bill increases of up to 40 percent for customers as the company works to secure its future.
Chris Weston told Sky News’ Ian King that he didn’t believe the firm had been “at all secretive” about the potential for price rises.
The group – the UK’s biggest water supplier with 16 million households across London and the South East – revealed that its investors had pulled a £500million funding lifeline that was due to be paid at the end of this month.
Thames Water blamed Ofwat, claiming that the regulator had made its business plan “uninvestible”.
It is understood that investors pulled the funding plan that was agreed last summer after Ofwat refused to bow to the water giant’s demands for a 40 percent bill hike for customers, an easing of capital spending requirements, as well as leniency on penalties for failing to meet targets.
The debt-laden firm’s chief executive, Chris Weston, admitted that if no alternative funding could be found by the end of next year, then it could face the prospect of a special administration – which would likely see the taxpayer pick up the bill.
Thames Water stressed that it had £2.4 billion of cash currently available to it, which should see it meet funding needs for the next 15 months.
Mr Weston said there was a risk of nationalisation if funding was not secured after this, but added: “we are a long way from that point at the moment”.
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