Millions of households could see their bills rise by a staggering 40 per cent under plans drawn up by the UK’s largest water company.
Thames Water has reportedly been lobbying the Government and industry regulator Ofwat to raise water bills by this figure.
Furthermore, the organisation is said to be pushing to keep dividend payouts and pay lower fines for breaches, the Financial Times reports.
The water company is attempting to secure a deal with Ofwat to allow it to charge customers more to prevent a takeover by court-appointed administrators.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Thames Water is reportedly proposing raising water bills by 40 per cent
GETTY
If this plan were to become a reality, Thames Water would be able to hike water bills by up to 40 per cent for the 15 million households it serves.
This comes as the company tries to deal with a debt pile of £14billion and deal with public scrutiny over sewage dumping.
Hypothetically, if the Government or regulator came to the conclusion Thames Water could not pay its debt, the high court would begin the special administration process.
At this point, administrators would get involved and manage the company, which the organisation is looking to avoid.
Water bills being raised by this amount would be a devastating blow to families already struggling with the rising cost of living.
Households have already been saddled with inflation-hiked prices for goods and services, and skyrocketing energy bills in the last two years.
An Ofwat spokesperson told GB News: “Ofwat does not comment on speculation. Thames Water needs to continue to deliver on its turnaround plan to improve its operational and environmental performance.
“It is for the company to secure shareholder backing to improve its financial resilience. We will continue to closely monitor the company’s progress as they do so to protect customers’ interests.”
LATEST DEVELEOPMENTS:
The cost of living crisis has put pressure on families
GETTY
A Government spokesperson added: “Water companies are commercial entities and we do not comment on the financial situation of specific companies as it would not be appropriate.
“We prepare for a range of scenarios across our regulated industries – including water – as any responsible government would.”
GB News has contacted the Department for Environment, Food and Rural Affairs (DEFRA) and Thames Water for comment.