Thames Water Placed Under Special Measures by Ofwat

Thames Water, heavily indebted with over £15 billion in liabilities, has been placed under special measures by regulator Ofwat, which has rejected the company's request to increase consumer bills by 44% over five years, permitting only a 23% rise. Despite this, Thames Water paid out £158.3 million in dividends in March to fund financially troubled holding companies, defying new rules against such payments for companies with poor financial and environmental records. The regulator has approved a £16.9 billion investment plan for Thames Water to improve its services and environmental performance, which falls short of the £19.8 billion requested. This comes amid public outrage over rising bills and poor environmental practices, including significant sewage spills. Ofwat's final decision on water company charges and investment plans will be published in December, following a period of consultation.