Thames Water Utilities
Limited
14 February 2025
Thames
Water requests referral of its Final Determination to the
Competition and Markets Authority
Thames Water Utilities Limited
("TWUL") has today asked
its economic regulator, Ofwat, to refer its Final Determination to
the Competition and Markets Authority (CMA) for a
re-determination.
The Board of the UK's largest water
and wastewater services company made this unanimous decision after
concluding that the Final Determination for the regulatory period
2025 to 2030 does not appropriately support the investment and
improvement that is required for Thames Water to deliver for its
customers, communities and the environment for the next five
years.
The Chairman of Thames Water, Sir
Adrian Montague said: "We have taken the decision to refer our
Final Determination to the Competition and Markets Authority in the
interests of our customers and the environment. We are focused on
putting the business on a long-term stable footing so we can
succeed in our turnaround, and build and maintain an infrastructure
that supports growth and can withstand the effects of climate
change.
"We put forward a realistic business
plan for 2025-2030 that addressed our customers' and stakeholders'
priorities such as providing safe and resilient water supplies and
improving performance. After careful consideration, our analysis
shows that our Final Determination for the next regulatory period
will continue to impact our ability to fund the improvements our
customers and the environment so rightly want and
deserve."
The challenges of its Final
Determination
Throughout the Price Review 24 (PR24)
process, Thames Water has engaged with Ofwat to seek to secure a
Final Determination that recognises its current position and
supports its turnaround. While there has been progress, after a
thorough review, it is clear that there remain significant gaps
between the Final Determination and what it needs to deliver for
customers and the environment. In its referral to the CMA, it is
seeking:
· A
regulatory settlement that reflects the circumstances of Thames
Water's operating area
· Targets that are challenging but achievable
· An
appropriate balance of risk and return
There will be no delay to the
delivery of Thames Water's plans for year one of AMP8 as a result
of this referral. Customer bills for 2025-26 will be
unaffected.
Full details of its statement of case
will be provided to the CMA in due course and in line with the
process timetable.
-Ends-
For further information
Investor enquiries
Edwin Lloyd - Head of Investor
Relations
debt.investorrelations@thameswater.co.uk
Media enquiries
Suvra Jans - Head of Media
Relations
07747
640810
Suvra.jans@thameswater.co.uk
Information contained in this
announcement would have been deemed inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014 as amended and
as it forms part of United Kingdom domestic law ("UK MAR") until
the release of this announcement. For the purpose of UK MAR and
Article 2 of Commission Implementing Regulating (EU) 2016/1055 as
it forms part of United Kingdom domestic law, this announcement is
made by Chris Weston (Director) at Thames Water Utilities
Limited.
LEI: 213800JKM5UQHFJOTZ25
