Ofwat Probes Thames Water's Environmental Delays, Debt Issues

Thames Water is under investigation by the UK water regulator Ofwat for potentially breaching its obligations regarding environmental protection schemes. The company committed to completing 812 schemes from 2020 to 2025 but has only managed to deliver about 100, citing cost increases exceeding inflation allowances as a contributing factor. Ofwat's senior director for enforcement, Lynn Parker, emphasized the seriousness of these potential failures and assured that action would be taken if necessary. Thames Water is struggling financially, facing £16 billion in debt and requiring £3.3 billion over the next five years to continue operations. Allegations have surfaced that funds designated for environmental clean-ups were redirected to other expenses, including bonuses and dividends. The regulator's investigation could result in Thames Water entering special administration if a restructuring plan is not approved.