Thames Water wanted 17% bill rise.

Posted: December 2, 2009 in General

Thames Water’s pre-tax profits jumped 15% to £225.5 million for the six months to September 30. Yet Thames Water attempted to rip customers off with a 17% bill rise.

IlieThames Water claimed that it needed to impose the rise in bills to fund a £5.5 billion upgrade of the water network. Isn’t that what profits are for?

But water regulator Ofwat said it would not allow a price rise imposition of more than 3% prompting Thames to claim that the resulting “funding gap” posed problems for future investment projects. That old chestnut.

Economics Advisory Panel co-ordinator Andrew Fisher said the water industry had put off investing in critical infrastructure for years while raking in massive profits.

“The water industry has delayed investing in the necessary infrastructure for years since privatisation, while it has racked up healthy profits by raising water bills above inflation,” he said. “Last year, water bills rose by 6.5 per cent, hitting the poorest hardest.”

Since water services were originally privatised over 20 years ago the company has ditched half of its workforce from 12,000 to 6,000 by selling off and contracting out services.

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Comments
  1. Thames Water’s interest on its borrowings is circa £60 million per annum.!
    Why you might ask is Thames Water borrowing so much money , when the firm is mega profitable.
    The answer is simple enough……….Kemble Water (based in Aus) bought Thames Water and saddled the company with the debt……..so in fact the consumer is actually buying the company on behalf of an Australian outfit.
    Re nationalisation would probably have been cheaper, and when paid for , the public would at least own the damn thing!

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