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.
Continue reading...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.
Continue reading...‘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.
Continue reading...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.
Continue reading...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.
Continue reading...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.
Continue reading...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.
Continue reading...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.
Continue reading...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.
Continue reading...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.
Continue reading...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.
Continue reading...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.
Continue reading...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.
Continue reading...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%).
Continue reading...Decision raises concerns about financial future of UK’s biggest water firm and increases prospect of nationalisation
Investors at Thames Water have pulled the plug on £500m of emergency funding, raising concerns about the financial future of the country’s largest water company and increasing the prospect of nationalisation.
The beleaguered utilities company announced this morning that its shareholders had refused to provide the first tranche of £750m funding set to secure its short-term cashflow, after the company had failed to meet certain conditions.
Continue reading...Details of Chris O’Shea’s ballooning package emerge in Centrica’s annual report after company reports bumper profits
The boss of the British Gas owner, Centrica, has seen his earnings nearly double to £8.2m, despite having admitted that his smaller pay packet the previous year was “impossible to justify”.
Chris O’Shea earned a basic salary of £903,000, which was topped up by cash and share bonuses worth an extra £7.3m.
Continue reading...Exclusive: Sarah Olney to press in parliament for details of scheme being drawn up in event of supplier’s collapse
Ministers must come clean on the secret details of an emergency plan for a taxpayer bailout in the event of Thames Water collapsing, a Liberal Democrat MP has said.
Sarah Olney will press in parliament this week for details of a behind-the-scenes rescue operation being drawn up for the biggest privatised water company in England. Olney said keeping the details of the contingency plan secret amounted to a cover-up.
Continue reading...Price Promise tariff gives discount on current cap and guarantees to be at least £1 per fuel under April one
British Gas has launched a fixed-rate gas and electricity deal that offers a 12% saving over most existing price-capped tariffs, adding a new choice to the hard-to-navigate home energy market.
For the past two winters, consumers have largely been spared having to seek out the cheapest deal, because, in almost all cases, it was their supplier’s price cap-protected standard tariff.
Continue reading...Government adviser says water and telecoms privatisation is to blame for disfiguring streets with concrete slabs
The government must increase fines on utility companies that dig up pavements for roadworks, then pour in concrete rather than fixing the mess, a government adviser has said.
Telecoms and water companies are creating “street scars” in a “wasteful process” that is marring British high streets, Nicholas Boys Smith, who chairs the Office for Place in the Department for Levelling Up, Housing and Communities has said in a report.
Continue reading...It looks as if USS simply overpaid and underestimated the effort and catch-up investment required
“We continue to view Thames Water as a long-term investment,” said the Universities Superannuation Scheme (USS), the £75bn pension fund for UK academics, as it wrote down the value of its stake in the Thames’ parent by nearly two-thirds, or almost £600m. Top marks for cheerfulness, but it’s a line that recalls the old joke about the definition of a long-term investment: a short-term investment gone wrong.
USS and Canadian pension fund Omers, the other late arrival on Thames’ register in 2017 (they replaced the departing Macquarie and its co-travellers), surely cannot have imagined that the long term would stretch quite so far over the horizon. As USS says, it’s taken no dividends so far, and the current business plan imagines no income for shareholders until 2030 at the earliest. That’s a near-eternity in investment terms for utility assets, which are supposedly prized for their ability to generate steady cash.
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