Thames Water says it needs 59% bill rise to survive

[g3org3y]

Thames Water has warned it will not survive unless it is allowed to increase water bills by almost 60% over a five-year period.

The UK’s largest water company demanded the bill hike after the wider water industry issued a scathing response to a proposed cap from the regulator for water bill rises.

In July, regulator Ofwat proposed an average £19 a year ceiling on water bill rises, with a final decision due in December.

But the water industry has argued the increase is not enough and said there was a risk that companies would not be able to raise enough investment to stop things like sewage spills.

[TGCOTF-dewey]

£158m dividend paid in March.

It's a confusing world.

[PurpleTurtle]

Sooner it is back in public ownership the better.

Privatisation was supposed to encourage investment in infrastructure that hadn't happened in the public sector.

That investment has not been forthcoming and meanwhile multiple sales of the company to foreign asset strippers (waves at Macquarie) have left it overwhelmed with debt.

I'm going on the #MarchForCleanWater on 26th of October: https://marchforcleanwater.org/ to make my voice heard. Never been on a protest march in my life but have had enough of these absolute shysters.

[daveco]

The bare faced cheek of it.

Paying out huge dividends while knowingly offering terrible service.

It's criminal imo.

[Biker 1]

OFWAT appear to have been asleep at the wheel, or perhaps they weren't given sufficient teeth to regulate properly in the first place?
If Thames is allowed to go bust, what are the implications of putting it back in public ownership? Surely bills will have to go up whatever the outcome?

[MXRod]

Thames water shares are at just over £77 .
Put the company backing public ownership and pay 1p. .per share compensation

[bitchstewie]

Just to rub it in.

Despite its problems, Thames Water still aims to pay £2bn in dividends over the next decade

[Earthdweller]

Without doubt some things should never have been privatised .. water being one

Any critical resource likewise

However, im not convinced the state would have run it any better mind

[BoRED S2upid]

TGCOTF-dewey said:

£158m dividend paid in March.

It's a confusing world.

I don’t know how they survive I honestly don’t. My heart bleeds for the greedy bds.

[Vasco]

One of the very few operations where I have to feel that the government needs to take this over. We're being held to ransom by a company that really doesn't care about anything apart from their profit and dividends.

[Hugo Stiglitz]

It's just going to get worse- water will soon be the same as gas/electric combined annual bills.

The investor companies know customers are captive to them so they can demand £££. It's all about increasing dividends..

[loafer123]

Their need for such a rise in rate is purely driven by too much debt, and I don’t really care if their equity holders get destroyed and their bond holders take a massive haircut.

Capitalism works both ways.

[alangla]

Earthdweller said:

Without doubt some things should never have been privatised .. water being one

Any critical resource likewise

However, im not convinced the state would have run it any better mind

As much as I agree that it shouldn’t have been privatised, the state owned industry in Scotland seems to be capable of pissing money away as well, albeit we haven’t had money wheelbarrowed out in the way companies like Thames have: https://www.bbc.co.uk/news/uk-scotland-67772825

For reference, the annual water bill in Scotland is based on council tax band and is £168.60 + £195.66 for sewage in band A up to £505.80 + £586.98 in band H, not sure how that compares to England & Wales.

[hidetheelephants]

Let them go bust, then the assets can be scooped up by the state and the employees worth keeping rehired.

[vaud]

Also check how much of your pension fund is coming from these dividends, etc.

[.:ian:.]

Thames seems to be cheap for the suppliers in the South, £3.06 / 1000l for supply and waste.
Southern is £4.40.

This seems to mainly be due to the cost of waste water which is half that of Southern... wonder why...

[Cobracc]

Another glorious Thatcher legacy...

[Mr Whippy]

MXRod said:

Thames water shares are at just over £77 .
Put the company backing public ownership and pay 1p. .per share compensation

Exactly. Let it go to zero.

Put in new public management (on DC pensions ffs!) and keep the people who do the actual work.

Without the debt burden and rubbish management I can’t imagine why there wouldn’t be money to start investing in the business.

[Mr Whippy]

vaud said:

Also check how much of your pension fund is coming from these dividends, etc.

It’s always this isn’t it. Oh but your pension!

At some point what use is a bigger pension if your water bill is £100 a month? Electric bill £200 a month. Etc?

These business models don’t exist and create equitable wealth distribution, you’ll pay one way or another, and your children even more.

How they’re even allowed to exist and operate to this point is beyond my comprehension.
I note TotsRUs and Debenhams, and likely Morrisons soon too, all being burdened with debt and asset stripped to failure… but a utility providing life critical infrastructure?

[hidetheelephants]

vaud said:

Also check how much of your pension fund is coming from these dividends, etc.

If my pension is sufficiently invested in Thames(or any single company and to a lesser extent a single sector) that their liquidation will meaningfully change anything the managers need fired into the sun. Diversity is not a dirty word.