England's largest water provider proposes a significant increase in water bills, surpassing 50%.
UK's largest water provider, Thames Water, serving 16 million individuals in London and southern England, is contemplating a price hike of over 50% in the near future. The corporation, operating privately, asserted that the cost-cutting measures ordered by regulatory body Ofwat were unrealistic, resulting in deterred investors.
Criticisms and allegations of routinely discharging wastewater into rivers and the sea have plagued Thames Water. The company has been under scrutiny by Ofwat since July, with an independent examiner assigned to oversee their operations. The company's ownership is a consortium, incorporating a British and Canadian pension fund. The UK's water services were privatized in 1989.
On Wednesday, Thames Water's CEO, Chris Weston, revealed that the additional water charges would be utilized to maintain its pipelines and treatment facilities, along with household and environmental improvements. Customers would now be accountable for the years of maintaining low prices. Weston also guaranteed enlarged social tariffs, benefiting a larger pool of households.
However, Ofwat had earlier dismissed Thames Water's initial request to boost prices by 44%, insisting on cost savings.
Early August saw Ofwat announcing hefty fines in the millions for three water providers, including Thames Water, due to negligence in disposing of wastewater correctly for years. A significant portion of the United Kingdom's wastewater system still reflects Victorian-era infrastructure.
The price hike proposed by Thames Water, affecting millions of customers, is aimed at covering maintenance costs and improvements. Due to the hefty fines in the millions handed out by Ofwat for historical wastewater disposal issues, the corporation is facing financial pressure.
