Thames Water Bill Hike: Ofwat Limits Increase Amid Restructuring Efforts

Thames Water is allowed by Ofwat to raise customer bills by 33% over five years, less than the company had requested. This decision is crucial for attracting new equity of £3.25 billion and a separate £3 billion debt lifeline to stabilize the troubled company facing criticism over infrastructure neglect.

In a significant development, Ofwat has permitted Thames Water to increase customer bills by 33% over the next five years, as reported by The Guardian on Wednesday. This increment is substantially lower than the 53% rise the company initially sought.

Unnamed sources in the report highlight an impending formal announcement from Ofwat, expected on Thursday. Thames Water, servicing 16 million customers, has been at the center of controversy for allegedly prioritizing dividends over necessary infrastructure and environmental investments.

Ofwat's decision is pivotal for Thames Water's strategy to secure £3.25 billion in new equity and a court-approved £3 billion debt solution, essential components of the company's rescue plan.

(With inputs from agencies.)