Thames Water appeals CMA over price cap decision

Thames Water has appealed to the Competition and Markets Authority (CMA) after regulator Ofwat capped its proposed bill increase at 35%, significantly lower than the 53% the company sought for the period from 2025 to 2030. The utility argues that the regulator's decision does not adequately support the necessary investments and infrastructure improvements amid its financial struggles, including a £19 billion debt. Thames Water's chairman emphasized the need for a settlement that balances risk and return to ensure stability and long-term viability. The appeal process is expected to take months, during which customer bills will rise in accordance with Ofwat's limits. The company is also awaiting a court ruling on a £3 billion restructuring plan that is crucial to prevent potential insolvency by March 24. Despite the ongoing challenges, Thames Water assures that its investment plans for 2025 will proceed without delay for now.