Thames Water customers could face a £174/year increase to bills as the debt-laden utility announced a bumper investment plan as it looks to cut spills and leaks.
The firm, which secured a £750 million lifeline from shareholders in August, plans to invest £18.7 billion including £4.7 billion investment in its network.
Thames said it would prioritise “storm overflows, bathing water status and reducing leaks and pollutions,” as part of the cash splurge but it looks like customers will be footing the bill.
While Thames said it has “choices” about exactly how “we recover the costs of providing life's essential service over the next period,” both involved customers forking out more cash.
Option one was a 'rise and flat' bill profile during 2025-2030, where the average monthly bill will rise by £14.55.
Alternatively, Thames said it could introduce lower bill increases at the start of the next price control period, but this would mean steeper rises over time.
The firm is looking to reduce storm overflows by 28%, blockages caused by sewer misuse by 15%, and the total number of pollution incidents by 30%.
Thames said it was assuming no dividends would be paid to external shareholders during asset management period 8 which starts in 2025.