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Thames Water could raise bills to £627 a year to help fix leaks

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Monday, April 22, 2024

Thames Water could raise bills to as much as £627 a year to pay to fix its leaky network, after promising to invest up to £3bn more over the next five years.The embattled water supplier said on Monday that it had updated its spending plans for 2025 to 2030 after discussions with the industry regulator, Ofwat.In October it submitted its business plan, known as a PR24, to Ofwat, pledging to spend £18.7bn over the period, and raise bills by 40% to £610 excluding inflation.skip past newsletter promotionSign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningPrivacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.after newsletter promotionThe company has now said it will definitely spend a further £1.1bn – totalling £19.8bn – to address environmental concerns over sewage dumping in the sector.Thames said it could spend £1.9bn on top of this – totalling £21.7bn over the period – depending on the availability of labour in its supply chain, which it would agree on an annual basis with Ofwat. If this occurred, bills for Thames’s 16 million customers would reach £627 by 2030, a 44% increase, excluding inflation.Thames is under intense scrutiny amid fears over its financial stability and questions over whether its shareholders are willing to pay upfront for its investments, before they are recovered from consumers through bills.The government is preparing plans in case the debt-laden company collapses, including renationalisation. The Guardian revealed last week that Whitehall contingency plans for a renationalisation could include the bulk of its £15.6bn debt being added to the public purse, with some lenders to its core operating company potentially losing up to 40% of their money.Thames said on Monday it had been able to up its spending without increasing bills “due to a rebalancing of operating and capital expenditures”.The Thames Water chief executive, Chris Weston, said: “Our business plan focuses on our customers’ priorities. As part of the usual ongoing discussions relating to PR24, we’ve now updated it to deliver more projects that will benefit the environment.“We will continue to discuss this with our regulators and stakeholders.”Shareholders said last month they were not willing to put in a promised £500m while a standoff between Thames and Ofwat continued.The Guardian revealed last week that Thames was considering issuing more debt to help fund its plans, adding to its £15.6bn debt pile.

Embattled water supplier promises to invest up to £3bn more over the next five yearsBusiness live – latest updatesThames Water could raise bills to as much as £627 a year to pay to fix its leaky network, after promising to invest up to £3bn more over the next five years.The embattled water supplier said on Monday that it had updated its spending plans for 2025 to 2030 after discussions with the industry regulator, Ofwat. Continue reading...

Thames Water could raise bills to as much as £627 a year to pay to fix its leaky network, after promising to invest up to £3bn more over the next five years.

The embattled water supplier said on Monday that it had updated its spending plans for 2025 to 2030 after discussions with the industry regulator, Ofwat.

In October it submitted its business plan, known as a PR24, to Ofwat, pledging to spend £18.7bn over the period, and raise bills by 40% to £610 excluding inflation.

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The company has now said it will definitely spend a further £1.1bn – totalling £19.8bn – to address environmental concerns over sewage dumping in the sector.

Thames said it could spend £1.9bn on top of this – totalling £21.7bn over the period – depending on the availability of labour in its supply chain, which it would agree on an annual basis with Ofwat. If this occurred, bills for Thames’s 16 million customers would reach £627 by 2030, a 44% increase, excluding inflation.

Thames is under intense scrutiny amid fears over its financial stability and questions over whether its shareholders are willing to pay upfront for its investments, before they are recovered from consumers through bills.

The government is preparing plans in case the debt-laden company collapses, including renationalisation. The Guardian revealed last week that Whitehall contingency plans for a renationalisation could include the bulk of its £15.6bn debt being added to the public purse, with some lenders to its core operating company potentially losing up to 40% of their money.

Thames said on Monday it had been able to up its spending without increasing bills “due to a rebalancing of operating and capital expenditures”.

The Thames Water chief executive, Chris Weston, said: “Our business plan focuses on our customers’ priorities. As part of the usual ongoing discussions relating to PR24, we’ve now updated it to deliver more projects that will benefit the environment.

“We will continue to discuss this with our regulators and stakeholders.”

Shareholders said last month they were not willing to put in a promised £500m while a standoff between Thames and Ofwat continued.

The Guardian revealed last week that Thames was considering issuing more debt to help fund its plans, adding to its £15.6bn debt pile.

Read the full story here.
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Thames Water data reveals raw sewage discharges in rivers rose 50% in 2024

Exclusive: Almost 300,000 hours of raw effluent poured into waterways, figures show, up from 196,000 in 2023A record 50% more raw sewage was discharged into rivers in England by Thames Water last year compared with the previous 12 months, data seen by the Guardian reveals.Thames, the largest of the privatised water companies, which is teetering on the verge of collapse with debts of £19bn, was responsible for almost 300,000 hours of raw sewage pouring into waterways in 2024 from its ageing sewage works, according to the data. This compares with 196,414 hours of raw effluent dumped in 2023.The Amersham balancing tanks in Buckinghamshire, which are supposed to safely store excess sewage after heavy rain, discharged 4,842 hours of raw sewage in 2024.Amersham was the scene of the longest unbroken individual discharge, when the equivalent of 154 days of raw sewage spilled into the River Misbourne, a chalk stream, last year.Marlborough sewage treatment works dumped raw sewage for 2,786 hours.At the Chesham sewage treatment works there were 2,681 hours of sewage discharges. Continue reading...

A record 50% more raw sewage was discharged into rivers in England by Thames Water last year compared with the previous 12 months, data seen by the Guardian reveals.Thames, the largest of the privatised water companies, which is teetering on the verge of collapse with debts of £19bn, was responsible for almost 300,000 hours of raw sewage pouring into waterways in 2024 from its ageing sewage works, according to the data. This compares with 196,414 hours of raw effluent dumped in 2023.The data, obtained by the analyst Peter Hammond in answer to an environmental information request to the company, comes after Thames Water won approval from the court of appeal for a £3bn emergency debt bailout to avoid collapse.Environmental campaigners and a small group of Thames’s creditors unsuccessfully challenged the bailout loan on the grounds it was not in the public interest and would continue a “Thames Water debt doom loop”. They argued temporary nationalisation under a special administration regime would be a better option.The raw sewage discharge data from event duration monitors on Thames Water combined sewer overflows, pumping stations and treatment works reveals the scale of the investment challenge ahead to fix its crumbling infrastructure.To pay for the investment Thames Water is seeking to raise household bills by 59% over the next five years in an appeal to the Competiton and Markets Authority, far higher than the 35% that the regulator, Ofwat, has approved.Thames Water’s sewage treatment works were responsible for almost 90% of the 298,081 hours of raw sewage it released into rivers in 2024, the data shows. The works are already subject to a criminal Environment Agency (EA) investigation into illegal sewage dumping and a parallel inquiry by Ofwat, which has ordered the water company to move at pace to put things right.Thames has admitted it has left its sewage treatment works to crumble for decades as a result of underinvestment. Its own business documents say it has “sweated these assets” by failing to invest in their upkeep, and as a result its infrastructure poses a risk to public safety, water supply and to the environment.The data also shows that raw sewage was discharged from its network of combined sewer overflows, which are supposed to be used only in exceptional circumstances, and from sewage pumping stations. According to the spill data: The Amersham balancing tanks in Buckinghamshire, which are supposed to safely store excess sewage after heavy rain, discharged 4,842 hours of raw sewage in 2024. Amersham was the scene of the longest unbroken individual discharge, when the equivalent of 154 days of raw sewage spilled into the River Misbourne, a chalk stream, last year. Marlborough sewage treatment works dumped raw sewage for 2,786 hours. At the Chesham sewage treatment works there were 2,681 hours of sewage discharges. Steve Reed, the environment secretary, has promised to clean up rivers and has set a target for water companies to achieve an average of 10 spills per sewage overflow by 2050. There was an average of 45.2 spills per overflow in 2024, according to the latest Thames data.Ash Smith, of Windrush Against Sewage Pollution, who monitors raw sewage pollution into the River Windrush, said: “Thames Water has become reliant on dumping sewage and paying dividends and bonuses while the billpayer funds everything.“The regulator’s inactivity and inertia plays a vital role in allowing this and to call it a scandal is an understatement.”skip past newsletter promotionThe planet's most important stories. Get all the week's environment news - the good, the bad and the essentialPrivacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.after newsletter promotionThe analysis suggests discharges are taking place in breach of the permit rules for the treatment works and could be illegal. For example, according to Hammond’s analysis, Marlborough sewage treatment discharged raw sewage for 26 days into the River Kennet, a chalk stream that is a site of special scientific interest. The spills were illegal, Hammond believes, because they took place on dry days in breach of the legal permit to operate.Thames Water said the data had to be verified by the EA and could be subject to change. “In 2024 we experienced one of the wettest years on record. Storm discharges are closely correlated with rainfall and groundwater conditions, and we therefore experienced an increase in the frequency and duration of storm discharge events during 2024,” the water company said.“We know how much people enjoy and appreciate rivers, which is why over the next five years we will deliver a record amount of investment to address our ageing infrastructure. This is an enormous undertaking; we are responsible for the oldest and most complex infrastructure of any company in the sector.”It added: “While all storm discharges are unacceptable, the sewage system was historically designed to prevent sewage backing up into people’s homes. Transparency is at the heart of what we do, and we were the first water company to publish a real time data map on our website, before it became legal requirement to do so.”Hammond, a professor of computational biology at University College London, now retired, is an expert on water company raw sewage discharges. His evidence to MPs on the environmental audit committee in 2021 showed the scale of illegal raw sewage discharges by water companies was 10 times greater than the EA estimated, prompting the biggest criminal investigation by the agency into illegal spills and the parallel Ofwat investigation. Both investigations are ongoing.

Water
Business
Pollution

‘It’s a history lesson’: fossil fish up to 16m years old found perfectly preserved in central NSW

Fossils retain microscopic structural features including stomach contents and provide first detailed evidence in Australia for fish called OsmeriformesGet our breaking news email, free app or daily news podcastFossil fish so exquisitely preserved that scientists have been able to reconstruct their final days from up to 16m years ago have been discovered in central New South Wales.Several fossils of small freshwater fish, embedded in an iron-rich mineral called goethite at the McGraths Flat fossil site, have retained microscopic structural features including their stomach contents and the outlines of cells that determine colour. Continue reading...

Fossil fish so exquisitely preserved that scientists have been able to reconstruct their final days from up to 16m years ago have been discovered in central New South Wales.Several fossils of small freshwater fish, embedded in an iron-rich mineral called goethite at the McGraths Flat fossil site, have retained microscopic structural features including their stomach contents and the outlines of cells that determine colour.This unusual level of detail – including the slender shape of the fish and position of its bones and fins – has revealed a lot about the species, called Ferruaspis brocksi, said lead author Dr Matthew McCurry, curator of palaeontology at Australian Museum.“In palaeontology there’s often so many gaps. Normally we just find isolated bones of a particular species,” McCurry said. “We can’t often see the whole animal, and we rarely see things like soft tissues preserved.”A fossil of stomach contents of the species called Ferruaspis brocksi shows that it fed predominantly on phantom midge. Photograph: Salty Dingo/Australian MuseumThe find, published in Vertebrate Palaeontology, has provided the first detailed evidence in Australia for a group of fish called the Osmeriformes, which today include graylings and smelts, McCurry said.Unusually, the fossils retained remnants of colour cells, called melanophores, including the tiny melanin-containing granules inside called melanosomes (measuring just over a thousandth of a millimetre).Co-author Assoc Prof Dr Michael Frese, a virologist adept at microscopy and based at the University of Canberra, said this level of detail “pushed the boundaries” of what could be preserved.From these microscopic details, the authors determined the fish were “counter shaded” – darker at the top and lighter at the belly – with two stripes along their sides.Also preserved were the animals’ stomach contents, and in some cases the intestinal tract.Frese said when viewed under a high-powered microscope, the fish bellies were full of the antennae of phantom midge larvae (a type of insect), bits and pieces of half-digested wings, and even a small mussel, or bivalve.These minute details offered a glimpse into the life of the fish in its final days, he said.The fossils were buried at the bottom of a lake like a billabong that was separated from nearby rivers, he said. Yet a second tiny bivalve, attached to a fish fin, suggested the animals came from a nearby river.That river might have flooded or otherwise spilled over into the lake, where the fish probably gorged themselves on phantom midge larvae. “They died with a full stomach,” Frese said.Illustration of species called Ferruaspis brocksi. Photograph: Alex BoersmaThe evolutionary biologist and palaeontologist Dr Alice Clement, who was not involved in the paper, said analysing melanophores to reconstruct colour patterns was a “big advancement in the study of fossil fishes”.Colours and patterns were important in the animal world – used for attracting mates, warning off predators and for camouflage. Yet the study of these characteristics in fossils was still in its infancy, she said.The species is named after Prof Jochen J Brocks, from the Australian National University, who has discovered several fossilised species at the McGraths Flat site.As well as detailed insights into the species itself, the fossils provided an “unprecedented opportunity” to understand Australia’s ancient ecosystems and the evolution of fish during the Miocene, McCurry said.The palaeontologist Prof John Long, an expert in ancient fishes at Flinders University who was not involved in the study, said fish fossils from the Miocene provided a “rare window” into ecosystems at a time of dramatic environmental change, when deserts expanded and forests declined.“It helps us appreciate the diversity of Australia’s unique fauna and how it evolved to cope with changing climatic conditions.”Frese said uncovering fossils at McGraths Flat was like flipping individual pieces of an upside-down mosaic.The fossils provide an ‘unprecedented opportunity’ to understand Australia’s ancient ecosystems, Dr Matt McCurry says. Photograph: Salty Dingo/Australian MuseumThe more you flipped, the more it revealed about the environment around the lake, he said. Over time, an even bigger picture emerged about how species evolved, and how continents and landscapes transformed at a critical point in history.“At the time these fish died and were preserved, that was a transitional period for Australia,” he said. “Basically it’s a history lesson, or a geological lesson, of what happens if the climate changes fundamentally.”

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Animals
Forests

Appeal court rules in favour of £3bn bailout for Thames Water

Judges dismiss appeal from campaigners who argued ‘eye-watering’ cost of loan was not in public interest The court of appeal has upheld Thames Water’s £3bn emergency bailout loan, in a decision published on Monday.Appeal court judges dismissed an appeal from environmental campaigners and a small group of Thames creditors after a three-day hearing last week. Continue reading...

The court of appeal has upheld Thames Water’s £3bn emergency bailout loan, in a decision published on Monday.Appeal court judges dismissed an appeal from environmental campaigners and a small group of Thames creditors after a three-day hearing last week.Both groups argued that the “eye-watering” costs of the £3bn emergency loan, at interest rates of 9.75%, were not in the public interest. They said putting the ailing water company, which has debts of £19bn, into temporary nationalisation under a special administration regime would be more cost effective.The decision in Thames’s favour means the company can continue operating long enough to attempt a restructuring of debts and the gathering of new investment.Thames Water, which has 16 million customers and 8,000 employees, has been on the verge of collapse for months.The deal will give the company £1.5bn in cash from creditors, released monthly, plus up to £1.5bn more to see it through an appeal to try to increase bills by more than the 35% allowed by the industry regulator for England and Wales, Ofwat.Thames Water argued in court that it would run out of money on 24 March if the emergency debt deal did not go through. It will still have to raise billions of pounds of additional equity to repair its finances over the longer term. The company last week said it was considering several bids from unnamed parties.Chris Weston, the Thames Water CEO, said: “We are pleased that the court of appeal has today decisively refused the appeals and upheld the strong high court decision to sanction the company plan. We remain focused on putting Thames Water on to a more stable financial foundation as we seek a long-term solution to our financial resilience. Today’s news demonstrates further progress.”Weston added: “The company plan will not affect customer bills but will provide continued investment in our network to fix pipes, upgrade our sewage treatment works, and maintain high-quality drinking water. We remain of the view that a market-led solution is in the best interest of customers, UK taxpayers and the wider economy.”The high court gave Thames Water permission to go ahead with the bailout in February, but Mr Justice Leech said that the costs of the financing were “eye-watering”.Campaigners led by Charlie Maynard, Liberal Democrat MP for Witney, on behalf of a group of environmental charities, appealed last week along with a group of creditors.The court of appeal will publish its reasons at a later date.

Water
Business

These are the proposals lawmakers hope will save Texas’ water supply. Track them here.

Most lawmakers — as well as Gov. Greg Abbott and Lt. Gov. Dan Patrick — want to invest big in water. Here are the proposals that would do it.

Subscribe to The Y’all — a weekly dispatch about the people, places and policies defining Texas, produced by Texas Tribune journalists living in communities across the state. This article is part of Running Out, an occasional series about Texas’ water crisis. Read more stories about the threats facing Texas’ water supply here. It will also be updated through the legislative session as bills advance. Texas’ water supply is full of uncertainties. Leaking water pipes and deteriorating infrastructure plague the state’s water systems. Prolonged droughts and record-setting heat waves are depleting the state’s rivers. And a growing population is adding more stress to the system every day. One state figure estimates there could be a severe shortage of municipal water by 2030 if there is recurring, record-breaking drought conditions across the state, and if water entities and state leaders fail to put in place key strategies to secure water supplies. State lawmakers have proposed several possible solutions. Their proposals range from committing to annual funding for water projects to tapping into new sources, like oil and gas wastewater that comes from the ground during extraction, and making sure the quality of drinking water is safer. There are a number of steps to the legislative process, however, and they all have to take place before a bill can go into law. There are 10 bills the Tribune is tracking — some of them have moved quickly in the legislature, while others have failed to pick up steam. Here are the steps of the process we are tracking: Related Story March 13, 2025 Bill has been filed: This is the very first step in the process. A bill is written and introduced in one of the two legislative chambers, the Texas House or state Senate. In the works: Bills are assigned to committees where a panel of lawmakers vet the bill and take testimony from the public. Bills must be approved by at least one committee before the full chamber votes on it. Both chambers have to approve a bill for it to become law. A bill may also go to a conference committee to reconcile any differences between the chambers on the bill before it’s passed. Passed the House: The bill received a majority vote of approval by state representatives. If it is a House bill, it must go to the Senate next for approval. If it has already passed by the Senate, then it is sent to Gov. Greg Abbott. Passed the Senate: The bill received a majority vote of approval by state senators. If the bill starts in the Senate, it will go to the House for approval. If it’s already been passed by the House, then it is sent to Abbott. Signed into Law: Bills signed by Abbott become law. If there is a bill left unsigned but was not vetoed by Abbott, then it automatically becomes law. Vetoed or failed: A legislative proposal failed by missing a key deadline or did not make it out of the original committee for a floor vote. Abbott could also veto any bills sent to him. Here are the bills to follow: Senate Bill 7 — A priority bill that establishes an administrative framework for how water projects — including building of infrastructure that would transport water across the state and fixing leaking pipes — would be funded under the Texas Water Development Board. The bill would also establish the Texas Water Fund Advisory Committee for oversight and the Office of Water Supply Conveyance Coordination to improve regional and statewide water infrastructure connectivity. Bill has been filed. Senate Joint Resolution 66 — A constitutional amendment to dedicate $1 billion to the Texas Water Fund for up to 16 years beginning in 2027. The annual stream of state tax dollars and insurance premium taxes would help cities and local water agencies buy more water and repair aging infrastructure. It calls for 80% of the appropriated money to go to the New Water Supply for Texas Fund — prioritizing desalination projects and pipelines transporting water from the water-rich regions of Texas to arid, drought-stricken areas. The other 20% would go to fixing aging infrastructure. The bill would expire in 2043. In the works. Bill has been referred to a Senate committee on finance. House Bill 16 — A sweeping priority bill that touches on water funds, flood plans, and the development of infrastructure to transport water into a water supply system. The bill would also create the Texas Water Fund Advisory Committee to oversee operations on each fund and report to the Texas Water Development Board. In the works. Bill has been referred to a House committee on natural resources. House Joint Resolution 7 — A constitutional amendment to dedicate $1 billion to the Texas Water Fund for up to 10 years. The annual stream of state tax dollars would help cities and local water agencies buy more water and repair aging infrastructure. It gives the Texas Water Development Board full discretion over the $1 billion, allowing it to distribute the money as it sees fit. In the works. Bill has been scheduled for a public hearing. House Bill 1501 — Directs the Texas State University Meadows Center for Water and the Environment to study how Texas can develop seawater desalination plants along the Gulf Coast. Desalination is the process of removing salt from seawater or salty groundwater so it can be used for drinking water, irrigation and industrial uses. The study will examine international desalination plants in Israel and Australia to identify best practices and challenges, including financial barriers and explore ways to dispose of brine — highly salty and concentrated liquid — including its potential use in nuclear energy production. The findings must be reported by Jan. 1, 2027. In the works. Bill has been referred to a House committee on natural resources. House Bill 310 — A bill that directs the Texas Water Development Board, the state agency that oversees water supplies and projects, on how to allocate money from the Texas Water Fund. The board would ensure a portion of the money is used for water infrastructure projects and prioritized by risk or need. It would go to rural areas with less than 20,000 people, and areas with at least 20,000 residents but no more than 150,000. It also calls for money to be spent on a statewide public awareness campaign about water. In the works: Bill is pending in a House committee on natural resources. Senate Bill 1145 — Authorizes the Texas Commission on Environmental Quality to issue permits for land application of produced water — wastewater that comes out of the ground during the extraction of oil and gas production — and develop standards that prevent pollution of surface and groundwater. Passed the Senate: The House has received the bill for review. House Bill 2080 — A bill that calls for the Texas Commission on Environmental Quality to appoint a panel to review the duties of a groundwater conservation district. This would happen if someone files a petition with the TCEQ requesting an inquiry about a conservation district. If the petition is not dismissed, the commission would appoint a review panel of five members. Bill has been filed. House Bill 2114 — This bill aims to prevent conflicts of interest by barring engineering firms involved in state or regional water planning from also constructing reservoirs. It specifically applies to feasibility reviews assessing costs, timelines, land acquisition, and economic impacts. One example of a case is the $7 billion Marvin Nichols Reservoir, which groups estimate would flood over 66,000 acres of northeast Texas forest. A feasibility review released last year found no major obstacles to the project. The firm that conducted the review, Freese and Nichols Inc., is also set to build the reservoir. Bill has been filed. House Bill 1400 — Creates a new fund to support scientific research that will expand knowledge about the quality, quantity and threats to the state’s groundwater resources. It will be administered by the Texas Water Development Board. In the works. Bill has been scheduled for a public hearing. We can’t wait to welcome you to the 15th annual Texas Tribune Festival, Texas’ breakout ideas and politics event happening Nov. 13–15 in downtown Austin. Step inside the conversations shaping the future of education, the economy, health care, energy, technology, public safety, culture, the arts and so much more. Hear from our CEO, Sonal Shah, on TribFest 2025. TribFest 2025 is presented by JPMorganChase.

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Grants to clean up drinking water in red states could get axed under Trump

As the EPA takes steps to shut down environmental justice programs, community grants across the country are on hold.

As the EPA takes steps to shut down environmental justice programs, community grants across the country are on hold.

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