Ofwat’s final determination on Thames Water: Thames21 calls for Thames Water and Regulators to up their game

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“Ofwat, the water industry regulator, has announced that it will be increasing consumer bills by 35% excluding inflation over the next five years for Thames Water customers.

“While Thames21 understands the need for investment in infrastructure, we are concerned about the impact on London’s households, and we are keen to understand how Thames Water will allocate these funds to improve its sewerage infrastructure while protecting the environment and restoring river health.  

“We are alarmed to see that the quality and ambition of Thames Water’s business plan is considered inadequate to achieve the aims required by Ofwat.  

“We recommend that Thames Water uses the investment allowances allocated to reducing pollution to increase its investments in Nature-based solutions, which reduce pollution cost-effectively whilst also delivering multiple benefits including improved water quality, reduced flood risk, enhanced biodiversity, and community health and wellbeing.  

“We also expect Thames Water to demonstrate greater leadership in restoring river health by working collaboratively with stakeholders to deliver solutions throughout a cross–sector, collaborative catchment-based approach. 

“The recent investigation by the Office for Environmental Protection exposed significant regulatory failures by DEFRA, the Environment Agency and Ofwat. This troubling record raises questions about the regulators’ ability to ensure Thames Water meets its new targets. Effective enforcement is essential if these ambitions are to drive meaningful improvements for the health of our rivers and communities. Without robust oversight, the cycle of environmental harm risks continuing unchecked. 

“London’s climate resilience, the health of its rivers, the reliability of water supply to businesses and communities, and the health and wellbeing of its communities, are all at stake. We hope to see greater ambition and delivery by water companies and regulators from 2025.” 

 

The Overview of Thames Water’s PR24 final determination can be found here.