Big Price Hikes Ahead for Brits
Thames Water is set to increase bills by a whopping 56%, aiming to tackle its massive £15.6 billion debt burden. Additionally, Southern Water is proposing a significant 70% rise, bringing bills to £749 annually after inflation.
Thames Water's Business Plan
Thames Water, a provider for nearly ten million people, will unveil its five-year business strategy next week. The company is pushing for a 40% increase, which would translate to a 56% rise when factoring in inflation. By 2030, average household water bills could reach £733, marking a substantial £262 increase from current levels.
Stand-Off with Ofwat
Reports indicate that Thames Water's larger proposed increase is part of ongoing negotiations with Ofwat. The regulator is currently scrutinizing business plans from nine water companies, with a decision expected on June 12. Thames Water and Ofwat have been at odds over the business plan, leading investors to label the UK's largest water company as "uninvestable" without concessions from Ofwat.
Government Preparedness
The UK government is gearing up for potential intervention to support Thames Water if necessary, as discussions with regulators and investors continue amid financial challenges.
Did you miss our previous article…
https://hellofaread.com/money/retail-sales-stagnate-as-shoppers-cut-back-on-food-and-drink-spending/
