Thames Water ‘blatantly greedy’ after saying 35% surge in customer bills isn’t enough
Crisis hit Thames Water was accused of being “blatantly greedy” after claiming a 35% price hike for customers was not enough.
The debt-ridden supplier has launched an appeal against the already inflation-shattering bill increase approved by industry regulator Ofwat in December. The 35% surge over the next five years will end up being more, as it does not take inflation into account.
Thames, the country’s biggest water company, had argued for a more than 50% leap in bills over the next five years to pay for long overdue investment in tackling its woeful track record on leaks and sewage discharges. The company has asked Ofwat to refer its decision to the Competition and Markets Authority.
It claimed Ofwat’s decision “does not appropriately support the investment and improvement that is required for Thames Water to deliver for its customers, communities and the environment for the next five years.” Sir Adrian Montague, chairman of Thames Water, claimed it had appealed “in the interests of our customers and the environment.
We are focused on putting the business on a long-term stable footing so we can succeed in our turnaround, and build and maintain an infrastructure that supports growth and can withstand the effects of climate change.” But Cat Hobbs, director of the group We Own It, said: “This appeal is a blatantly greedy and desperate bid from Thames Water to rake in even more cash from the public as it drowns in its own debt. The company is a joke, but the joke is at our expense. The government must immediately bring Thames Water into special administration and permanent public ownership.”
Mike Keil, chief executive of the Consumer Council for Water, said: “Customers of Thames Water are already facing steep bill rises and they will be incensed the company now has the temerity to pursue an even larger increase. This is a company which has a poor track record on service delivery and customer complaints, so people will rightly question why it should be trusted with even more of bill-payers’ money. People want investment to improve services but they also expect value for money and to be treated fairly. CCW will do everything in its power to ensure the views and concerns of customers are heard loudly and clearly during this appeal.”
It comes ahead of a jump in bills this April, the first of the five years of increases sanctioned by Ofwat. Households across the country will face water bill increases of as much as £224 a year in the biggest wave of hikes since privatisation 36 years ago. Much of the Ofwat-approved round of price rises will be front-loaded.
Thames, for example, will increase average bills by an average 31% this April, once inflation has been added in – or by £151 to £639. The increase will go ahead, regardless of the appeal. It comes as debt-ridden Thames awaits a court judgment on whether it can go ahead with a rescue bid designed to stop renationalisation.
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