Thames Water’s chronic leakage failures cost it dear
Published June 7th, 2018
Failure to meet leakage targets over a three-year period will cost Thames Water £320 million in regulatory penalties and additional expenditure.
Industry regulator Ofwat announced this morning that England’s largest water and sewerage company had agreed to repay £65 million to its customers – on top of £55 million of automatic fines – for failing to meet leakage targets in the current financial year, as well as in 2016/7 and 2017/18.
The company also confirmed that it would invest an additional £200 million between now and 2020 to ensure that it meets the leakage target in 2019/20.
An Ofwat investigation concluded that Thames’ management had not paid enough attention either to the missed targets or their importance in respect of meeting the company’s statutory obligations.
Thames’ customers will each receive compensation of around £15, with an initial rebate on next year’s bill, and the balance to be paid by 2025.