Thames Water admits delays to environmental works

Thames Water is under investigation by Ofwat after the company admitted it will not complete more than 100 environmental schemes funded by customers.

The regulator will look into whether delays to the plans mean England's largest water firm has breached its licence.

The projects included upgrades to sewage treatment works and reducing wastewater spillages.

Thames Water said it would "co-operate fully" with the investigation but admitted it had faced "challenges of delivering all the elements" of its programme due to cost increases.

The company promised to carry out 812 schemes as part of a wider national programme between 2020 and 2025, to meet national regulations.

But Ofwat said it was told by the utilities giant it would be unlikely to complete more than 100 of these by the end of March deadline.

Lynn Parker, senior director for enforcement at Ofwat, said: "Customers have paid for Thames Water to carry out these essential environmental schemes.

"We take any indication that water companies are not meeting their legal obligations very seriously.

"If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right."

A spokeswoman for Thames Water said it was working with Ofwat, stressing: "Customers will not pay twice for investment that has already been funded through customer bills."

She added they had been impacted by "cost increases that are higher than the inflation index applied to our allowances".

The parent company of the troubled utilities firm is set to run out of money by late March and could enter special administration if it does not get court approval for a restructuring plan.

It is in about £16bn of debt and needs £3.3bn over the next five years to keep going.

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