Thames Water reportedly given six weeks to agree survival plan

The UK largest water provider, according to reports from The Guardian over the weekend, must present a new turnaround strategy and business plan before 23 May when Ofwat holds its final board meeting before it issues a verdict on how much water companies will be allowed to charge consumers.  

It comes despite the fact the business believes it has enough cash to survive for about 15 months with insiders and investors fearing it must move quickly to strike a deal with its watchdog to stave off insolvency.  

Ofwat is understood to be sceptical the current business plan or its longer turnaround plan are viable or fair on consumers. 

Sources have also told the outlet the regulator is concerned about bills rising without there being a clear strategy to overhaul how the business is managed, since this would risk the burden of poor business decisions being pushed on to customers.

If Thames Water and Ofwat can’t agree on a new financial plan and a fresh strategy for how to run the company it will ramp up the likelihood of nationalisation. 

Speaking to The Guardian, an Ofwat spokesperson said: “We do not comment on speculation. Ofwat is cotinuing to work on draft determinations that will be published in June.

“We will continue to monitor Thames Water as it seeks to turn around its performance for customers and the environment.”  

Thames Water, meanwhile, declined to comment on the record.