Category Archives: Utilities

E.ON must pay £14.5m to prepayment customers after billing failures

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Ofgem says nearly 250,000 people will each receive average of £144 in compensation and refunds

The energy regulator has ordered power supplier E.ON Next to pay £14.5m in compensation to nearly 250,000 prepayment customers, after an investigation found “unacceptable” failures to pay credit they had on accounts or final bill payments they were owed.

Ofgem found that the customers were affected over an 18-month period from early 2021 to late last year by an error in E.ON Next’s billing system. About 100,000 of the affected accounts were also in credit.

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Floods, explosions and asbestos: Thames Water faces potential problems on all fronts

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Exclusive: Senior managers say they are forced to press ahead with orders for vital items without approval

When Sarah Bentley and Sarah Albon met at Beckton sewage treatment works in east London, the choice of location was designed to underline Thames Water’s predicament.

The site is Europe’s largest sewage treatment operation, with Grade II-listed parts of the site dating to the 1860s. It is now connected with the new Thames Tideway super-sewer, but insiders say several parts of the site are simply crumbling. The site is also riddled with asbestos.

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Thames Water supply ‘on knife-edge’ with £23bn repairs needed

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Exclusive: Company has failed to tackle serious safety concerns or upgrade vital IT systems, Guardian investigation reveals

Thames Water has £23bn of assets that are in urgent need of repair and the supply of water to its 16 million customers is “on a knife-edge”, a Guardian investigation can reveal.

Britain’s biggest water company has failed to tackle adequately serious safety concerns, has not upgraded essential IT systems and has tolerated a culture of intimidation among staff, according to insiders and an analysis of documents.

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United Utilities refuses to hand over data on sewage discharges into Windermere

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Water company claims information is not in the public interest despite widespread pollution of UK waters

• ‘It’s a national disgrace’: fury at sewage-filled Windermere over toxic algae and dead fish

One of the UK’s biggest water companies is fighting a legal battle to block public access to data on treated sewage it is discharging into Windermere in the Lake District.

United Utilities initially claimed that data from phosphorus monitors at sewage treatment works at the lake “was not environmental information”. It later claimed the information on phosphorus – which can pollute watercourses when at high levels – was “internal communication” and exempt from disclosure.

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Water companies in England and Wales told to pay £158m penalty to customers

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Ofwat says firms must lower bills next year after poor performance on issues such as sewage spills and leaks

Water companies in England and Wales will have to return nearly £158m to customers through lower bills next year after falling further behind on key targets including sewage spills and leaks.

The regulator, Ofwat, announced the penalties as part of its annual review of companies’ performance.

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Southern Water seeks to borrow up to £4bn from investors

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Move could increase pressure on utility companies turning to bond markets amid crisis at Thames Water

Southern Water is looking to borrow up to £4bn from investors over the next five years, in a move that could ratchet up the pressure on utility companies turning to bond markets for support amid the ongoing crisis at Thames Water.

An investor presentation posted to Southern Water’s website shows that it will need to tap investors for up to £3.8bn worth of debt over the next five years, as part of a revised business plan – on top of needing to raise £650m worth of equity.

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Unresolved water complaints in England and Wales rise to near-decade high

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Customer disputes over sewage spills, billing mistakes and water meters soar in past year

The number of customer complaints that were unable to be resolved by water companies in England and Wales has risen by almost a third to the highest level in nearly a decade.

There was a 29% increase in 2023-24 in cases escalated to the Consumer Council for Water (CCW) by households that failed to achieve a resolution from their supplier, the watchdog said.

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Small firms face near-30% rise in water bills, Ofwat letter reveals

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Businesses in England and Wales say they are paying for ‘historic errors’ by water suppliers

Small businesses have accused water suppliers of saddling them with the cost of “historic errors” made by bosses in the scandal-hit industry, as it emerged their bills will rise nearly 30% by 2030.

The water industry regulator, Ofwat, has told businesses that it expects average wholesale charges for non-household customers – which include small firms, charities and hospitals – to increase by about 27% before inflation over the next five years, outstripping the anticipated rise in household bills.

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Labour used water industry analysis to argue against nationalisation

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‘Economically illiterate’ Defra letter sent to anti-sewage groups cites 2018 report commissioned by water companies

Labour used “economically illiterate” analysis paid for by water companies in order to argue against the nationalisation of the sector, the Guardian can reveal.

In an official letter recently sent to anti-sewage groups, civil servants cited a paper by the Social Market Foundation as a reason to avoid nationalisation as part of its review of the sector. The report from 2018 was commissioned by United Utilities, Anglian Water, Severn Trent and South West Water.

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Southern Water considers shipping supplies from Norwegian fjords to UK

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Contingency plan using sea tankers to deal with future shortages would be paid for from customers’ bills

Southern Water, one of Britain’s biggest water companies, is drawing up contingency plans to tanker water from Norway to deal with future supply shortages and drought.

Southern, which has 2.7 million customers for drinking water supply in the south-east of England, could import water from Norwegian fjords to provide up to 45m litres a day, and would pay for it from customers’ bills.

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Thames Water credit ratings slashed to lower levels of junk as default fears grow

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S&P and Moody’s cut ratings by five notches on risk troubled company will run out of cash

Thames Water’s debt rating has been slashed to the lower levels of junk by two major credit rating agencies, piling further pressure on the UK’s biggest water company, which is rapidly running through cash and fighting to stave off renationalisation.

S&P Global Ratings and Moody’s said the utility was fast running out of money and on the brink of default. S&P cut its rating on Thames’s £15bn top-ranking debt pile by five notches to CCC+, taking it into the triple-C category that is considered very risky. Thames lost its investment-grade credit rating in July.

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Thames Water lobbied Whitehall to press Ofwat on allowing higher bills

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Exclusive: Debt-ridden company also warned officials of ‘chilling effect’ of any renationalisation

Thames Water has lobbied the government to intervene with the regulator to allow it to charge far higher bills, the Guardian can reveal.

Advisers and board members of the beleaguered water company are understood to have met Whitehall officials in recent weeks to say that allowing it to be temporarily renationalised would have a “chilling effect” on the entire UK’s appeal to international investors, sources familiar with the discussions told the Guardian.

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Southern Water boss handed £183,000 bonus despite huge rise in bills

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Award for Lawrence Gosden comes despite criticism over business plan and attempts to increase bills by 73%

The chief executive of Southern Water has received a £183,000 bonus despite submitting a business plan that has been criticised by the industry regulator and attempting to raise bills more than any other English water company.

Lawrence Gosden received the bonus as part of a £764,000 pay package, up from £428,000 a year earlier, according to the company’s annual report.

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Thames Water owner to liquidate solar energy subsidiary amid debt crisis

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Exclusive: solar developer Trinzic to voluntarily shut down as holding company seeks to recoup more than £25m

A solar energy project developer linked to Thames Water is to be liquidated and its staff made redundant as the crisis engulfing the debt-laden water supplier puts strain on its complex corporate structure.

Trinzic Operations Ltd, which is ultimately owned by Thames’s parent company Kemble Water Holdings, is to be voluntarily shut down, the Guardian can reveal.

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Almost a third of household smart meters not working properly, says Citizens Advice

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Charity says tech problems and poor customer service mean millions in Great Britain missing out on promised benefits

The number of gas and electricity smart meters that are not working properly is likely to be higher than government figures suggest – possibly 20% to 30% of the total – according to research from Citizens Advice.

The charity said millions of households were missing out on the promised benefits from smart meters due to “problems with technology” and poor supplier customer service.

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Thames Water collapse could trigger Truss-style borrowing crisis, Whitehall officials fear

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Exclusive: Concerns over effect on UK’s finances lead officials to believe utility should be renationalised before general election

Senior Whitehall officials fear Thames Water’s financial collapse could trigger a rise in government borrowing costs not seen since the chaos of the Liz Truss mini-budget, the Guardian can reveal.

Such is their concern about the impact on wider borrowing costs for the UK, even beyond utilities and infrastructure, that they believe Thames should be renationalised before the general election.

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

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Embattled water supplier promises to invest up to £3bn more over the next five years

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.

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Thames Water owner bond slumps to record lows amid uncertainty over firm

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Fall to 14.4p comes after shareholders said they were unwilling to inject further funds

A bond issued by Thames Water’s parent company has fallen to record lows as the embattled company scrambles to secure its future, and the government signalled it is “ready to step in if necessary”.

The £400m bond, issued by the water supplier’s parent company, Kemble, has slumped to only 14.4p after shareholders indicated that they were unwilling to inject further funds into the heavily indebted utility company.

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Thames Water hires restructuring advisers amid fears of collapse

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Crunch talks expected after investors refuse to secure short-term cashflow and parent company due to repay £190m loan

Thames Water has assembled a team of City experts to lead urgent restructuring talks this week amid fears that its parent company may collapse by the end of the month.

The crunch talks are expected to take place days after Thames Water’s investors signalled they would not put further funds into the company to secure its short-term cashflow, according to a source.

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Energy bills: standing charges are not standing still

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Despite a 12.3% cut in April’s energy price cap, there is an important fixed element in your bill that is rising again

“Great news! Your unit rates are going down.” E.ON’s letter to customers starts with glad tidings – but, as it soon admits, there is an element of their bills that is set to go up in most parts of the country.

Despite a headline cut of 12.3% in April’s energy price cap, yet again standing charges are rising. In E.ON’s case, on its Next Flex tariff, electricity charges are due to rise from 62.205p to 67.9041p – an increase of just over 9% – while for gas, charges go up from 29.595p to 31.894p (up almost 8%).

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