Thames Water said this morning it would boost its spending plan, as submitted to the water regulator Ofwat, by £1.1bn following consultations with stakeholders.
In a statement delayed from last week until today, the company said that its now updated PR24 business plan, which is set to cover the 2025-2030 regulatory period (known as AMP8), had been submitted to the industry regulator.
The company said the new plan would result in total capital spending for the period of £19.8bn, which will be “directed to projects benefitting the environment.”
According to the company, these projects would include: “Maintaining safe high quality drinking water, ensuring security of water supplies, delivering further environmental improvements, and building greater network resilience to address an ageing asset base, climate change and population growth.”
Thames Water is the last of all the water and sewage companies to submit its plan for the period, which the regulator requires under a five-year price review process known as PR24.
Ofwat is due to announce its draft decision on the plans in June, with a final determination coming at the end of this year.
Despite the hike in spending, the company said there would likely be no impact on consumer bills outside of its already submitted plan. According to its projections, average consumer bills are expected to rise to £608 by 2030, excluding inflation.
These figures exclude inflation budgeted at two per cent for the regulatory period. After inflation is included, bills could rise by over 40 per cent by 2030.
Thames Water suggested bill profile for AMP 8 (2025-2030)
Thames will continue to look for opportunities to deliver more investment in AMP8 and has proposed that a further £1.9bn of potential investment be placed into a so-called “Deliverability Assessment Mechanism”.
The new business plan suggests that if Thames were to invest the full £1.9bn in AMP8, then annual average customer bills would increase further by £19 over that period.
Chris Weston, chief executive of Thames Water, said: “Our business plan focuses on our customers’ priorities. As part of the usual ongoing discussions relating to PR24, we’ve now updated it to deliver more projects that will benefit the environment. We will continue to discuss this with our regulators and stakeholders.”
The embattled water firm has been in the eye of the storm over its mounting debt pile and the financial health of its parent company, Kemble Water Holdings.
Nationalisation fears have gathered increasing momentum throughout 2024, reaching a pitch last week when a secret plan to nationalise the firm and move billions of pounds of its debt onto government books was reported in the Guardian.
Thames Water has been contacted for comment.