Thames Water has deferred its planned challenge to the industry regulator’s curbs on customer bill increases, amid continuing efforts to secure a potential buyer for the cash-strapped business.
Britain’s biggest supplier had already put aside its fight for higher bills but had faced a deadline of Wednesday to make a final decision.
No new deadline has been set.
Thames (TWUL) is currently focused on a private sector solution to its financial crisis that would see a group of its biggest creditors take control of the company – averting the prospect of a Special Administration Regime.
Money latest: Which country pays the most for a pint?
The consortium, calling itself London & Valley Water and which includes Elliott Management and Apollo Global Management, set out proposals for a £20.5bn investment and turnaround plan over the summer.
It has also given a series of ownership commitments under efforts to convince Ofwat and the government they have a viable plan to restore financial, as well as operational, stability to the company.
Thames Water creditors to pledge no sale before 2030
Thames Water rescue plan promises £20.5bn investment
Thames Water creditors offer £1bn ‘sweetener’ in rescue deal
Thames has 16 million customers and debts north of £20bn. Its financial recovery and efforts to bolster infrastructure have consistently been damaged by fines for poor performance, including sewage spills.
The company had sought a 53% increase to customer bills between 2025-30. Ofwat allowed 35%.
Please use Chrome browser for a more accessible video player
It had planned to appeal the regulator’s final determination to the Competition and Markets Authority – the body which recently granted similar applications by five other suppliers.
But Thames put its own appeal on hold in March, pending the outcome of its ownership talks.
Thames said on Tuesday: “Discussions between TWUL’s senior creditors, the London and Valley Water Consortium (“L&VW”), Ofwat, and other regulators in relation to a potential market-led solution to the recapitalisation of the company are continuing.
“TWUL and Ofwat have agreed a further deferral of the Reference, which will provide an opportunity for these discussions to continue in the coming weeks. Given this, no deadline has been set for the end of the deferral period.
Be the first to get Breaking News
Install the Sky News app for free
“This deferral is not a withdrawal of the request for the Reference and TWUL remains of the view that the Final Determination does not serve the interests of Thames Water’s customers, communities and the environment.”
“TWUL remains focused on delivering a recapitalisation transaction which delivers for its customers and the environment as soon as practicable.”
A spokesman for the consortium said: “Today’s announcement and the further extension agreed follows discussion with Ofwat, EA (Environment Agency) and DWI (Drinking Water Inspectorate) and continued progress to develop a sustainable solution which will deliver improvements for Thames Water’s customers, employees and the environment.
“We will continue to work at pace with all stakeholders with a view to concluding discussions and agreeing the terms of a transaction as soon as possible, achieving an outcome that is first and foremost in customers’ interests and avoids the unnecessary cost, risk and delay of a special administration.”
