Thames Water considers adding weeks of funding after tapping investors for £1.5 billion | Business newsletter
Britain’s largest water utility is working on a plan to raise more capital just weeks after it announced plans to attract shareholders for £1.5 billion in new equity.
Sky News has learned that Thames Water has begun debating whether they need to seek new funding to carry out the transformation plan they have laid out under Sarah Bentley, their relatively new chief executive. are not.
Water industry sources this weekend said the company’s plans were yet to be determined, but said Thames Water could decide to raise hundreds of millions of pounds in addition to the £1.5 billion figure given. out in June.
Last month, the company, which issued a hose ban affecting 10 million customers across southern England, has come under serious fire for poor performance related to leaks and other problems. executive pay packages worth millions of pounds.
A Thames Water spokesperson said: “Like all businesses, Thames Water proactively manages its finances.
“This year, we have successfully raised additional equity from our backing shareholders and have refinanced maturing debt to put us in the best possible position as we continue to perform. currently following the 8-year turnaround plan we launched in May 2021.
“As we look forward to the next phase of regulation and consider the regulator’s growing expectations and the effects of climate change, we are weighing a range of opportunities to ensure that we can optimize delivery for customers today and in the long term.”
£1.5 billion in new equity split into £500 million in the current financial year, followed by another £1 billion by March 2025, when the current industry management term ends.
In its June statement, the company added: “Thames Water shareholders acknowledge that additional shareholder support may be needed to improve financial resilience.”
The additional shareholder funding forms part of a £2 billion spending increase designed to improve the company’s performance on leaks and river health, lifting total public spending. company over the current five-year regulation period to £11.6 billion.
Thames Water shareholders include China Investment Corporation, the country’s sovereign wealth fund; The Universities Superannuation Scheme, the UK’s largest private pension fund; and Infinity Investments, a subsidiary of the Abu Dhabi Investment Authority, are said to have endorsed the plan.
Serving around a quarter of Britain’s population, Thames Water has seen its reputation battered by revelations about its cavalier approach to pollution and indifferent treatment of customers.
A year ago the company was fined £4m for letting untreated sewage drain out of London’s sewers into a nearby river and park, while in August 2021 it had to paid £11 million for overcharging thousands of customers.
Ms Bentley, who joined as chief executive two years ago, has pledged to deliver better outcomes for both customers and the environment at a time when UK private water companies are under pressure. pay substantial dividends.
In total, tens of billions of pounds have been awarded to shareholders of water utilities across the UK since privatization, sparking public and political anger over the frequent mishaps of water companies. branch.
