Thames Water Utilities Limited has asked Ofwat to refer its Final Determination to the Competition and Markets Authority (CMA) for a redetermination.
The Board of the UK’s largest water and wastewater services company said it made a unanimous decision after concluding that the Final Determination for the regulatory period 2025 to 2030 does not appropriately support the investment and improvement that it believes is required over the next five years.
The Chairman of Thames Water, Sir Adrian Montague said:
“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.
“We put forward a realistic business plan for 2025-2030 that addressed our customers’ and stakeholders’ priorities such as providing safe and resilient water supplies and improving performance. After careful consideration, our analysis shows that our Final Determination for the next regulatory period will continue to impact our ability to fund the improvements our customers and the environment so rightly want and deserve.”
Throughout the Price Review 24 (PR24) process, Thames Water said it has engaged with Ofwat to seek to secure a Final Determination that recognises its current position and supports its turnaround. While there has been progress, after a thorough review, Thames said there remain significant gaps between Ofwat’s Final Determination and what Thames believes is required. In its referral to the CMA, it is seeking:
- A regulatory settlement that reflects the circumstances of Thames Water’s operating area
- Targets that are challenging but achievable
- An appropriate balance of risk and return
Thames Water has stated there will be no delay to the delivery of the company’s plans for year one of AMP8 as a result of this referral, and that customer bills for 2025-26 will be unaffected.
