Crisis-hit Thames Water has launched a bid to charge its customers more over the next five years than the industry regulator will allow, arguing it has been unfairly treated.
Britain’s biggest household supplier, which is currently in a battle for survival as it grapples a £19bn debt pile, had sought a 53% hike to bills from 2025-30.
That demand was rejected in December by the industry regulator Ofwat, which settled on a 35% rise as part of a price determination for all suppliers across England and Wales.
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The level of the inflation-busting increases granted to many firms are designed to unlock record investment in infrastructure, including sewage outflows, amid widespread outrage over pollution.
Thames is also under intense pressure to rake in all it can get because of the perilous state of its finances.
Thames, and other suppliers, had until this week to launch an appeal process with the Competition and Markets Authority (CMA).
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It is understood that the company’s customer bills will rise, from April, in line with Ofwat’s curbs until the appeals process is completed.
That is expected to take months.
It means the average annual bill for its 16 million households will rise to £639, according to industry data.
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Thames said in a statement: “The Board of the UK’s largest water and wastewater services company made this unanimous decision after concluding that the Final Determination for the regulatory period 2025 to 2030 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.”
The company argued that Ofwat failed to take full account of the challenges within its area of operations, including London.
It also complained that the ruling failed to strike the right balance between risk and return.
It is in talks over new investment but is currently waiting to hear if the High Court will approve a £3bn rescue deal to ward off the possibility of collapse.
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Thames has previously said it will run out of cash by the end of March.
Chairman, Sir Adrian Montague, added: “We have taken the decision to refer our Final Determination to the Competition and Markets Authority 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.”
