LONDON - Thames Water Utilities Limited, the UK's largest water and wastewater services company, announced today that it has received the Final Determination from its economic regulator, Ofwat, for the upcoming regulatory period, which spans from April 1, 2025, to March 31, 2030. This determination is a critical factor in the company's future operations and its ability to improve services for its customers and the environment.
The company stated that it would carefully review the complex details of the determination before responding. Thames Water plans to announce the revised charges for customers, which will be effective from April 2025, by early February. These rates will be in accordance with the Final Determination, and the company has reaffirmed its commitment to assisting customers in need with their bills.
In addition to the regulatory announcement, Thames Water has discussed a proposed transaction that would extend its liquidity runway by up to £3.0 billion, known as the Liquidity Extension Transaction (JO:TCPJ). This move is designed to enhance the stability and financial resilience of the business while continuing its turnaround efforts and providing essential services to around 16 million customers in London, the Thames Valley, and the Home Counties.
The company's liquidity, considering the proposed transaction and related STID Proposals, would be extended to October 2025. There is also a potential for a further extension to May 2026, should the company choose to appeal to the Competition and Markets Authority (CMA).
The announcement is based on a press release statement and comes at a time when Thames Water is focusing on maintaining operational stability and meeting regulatory requirements. The company's response to the Final Determination will be closely watched by investors and customers alike, as it will influence the company's financial strategy and customer billing for the next five years.
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