Thames Water Seeks Major Bill Increases Amid Debt

Thames Water, burdened with over £15 billion in debt, is seeking to increase customer bills by up to 59% by 2030 to fund essential infrastructure improvements and tackle sewage spills. The company argues that Ofwat's proposed cap of a 23% bill increase is untenable and would render it 'uninvestible', potentially leading to its financial collapse. Thames Water's proposed hikes would bring average annual bills to nearly £700, significantly higher than the regulator's allowance. The broader water industry warns that Ofwat's proposals could prevent necessary investments and improvements, as companies need higher profits to attract investors. Critics argue that water companies have historically prioritized executive pay and dividends over infrastructure investment, leading to the current crisis. Ofwat is set to review all responses to its draft determination, which aims to balance consumer protection with the need for infrastructure funding.