Thames Water customers could face bill increases of up to 40 per cent as the chief executive has refused to rule out bill increases.
Shareholders have backed out of plans to push the first £500million of funding into the company, sparking concerns that bills could rise for customers.
Chris Weston, the water company’s CEO told Sky News’ he did not think the firm had been “at all secretive” about the possibility of prices rises.
The lack of funding caused shareholders to blame Ofwat for not offering “regulatory support” to help save the company’s future.
Mr Weston said: “I don’t think we have been at all secretive about that.
“But the plans that we have put forward – which are very much in accordance with what customers are asking us to do – require an investment of around £20billion in that 2025-2030 period, and that would result in a bill (increase) of around 40 per cent.”
Water bills are going up from Monday, April 1, with the average price rise will see £28 a year added to a water bill
PA
The nine shareholders said they had been in talks with Thames Water and the regulator to try and find a way through to help the company’s turnaround plan.
But in a statement, they said: “After more than a year of negotiations, Ofwat has not been prepared to provide the necessary regulatory support for a business plan which ultimately addresses the issues that Thames Water faces.
“As a result, shareholders are not in a position to provide further funding to Thames Water.”
Despite the financial pressures the company is under, Thames Water stressed that it had £2.4 billion of cash currently available to it so the company will not need to be nationalised immediately.
They are still generating enough money to keep it going day-to-day for up to 18 months.
Mr Weston added: “It is very clear listening to our customers that what they value most is high quality clean drinking water and that we do do all that we can to protect the environment.
“Those two things are primarily what is driving the investment that we are having to make in our network in that five-year period.”
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