Ofwat has confirmed the implementation of commitments from Thames Water, effective immediately, to remedy its licence breach in losing its investment grade credit ratings. This follows a public consultation.
The commitments are built around four key elements:
- The appointment of an independent Monitor to report on the company’s progress, including against its transformation plan. The independent Monitor will report back to Ofwat frequently and be entitled to access company information;
- Developing and delivering a suitable operational business plan to achieve turnaround;
- Taking the steps required to deliver an equity raise;
- New non-executive director board appointments.
These commitments will remain in place until the company regains two investment grade credit ratings.
