Thames Water floats five-year investment plan for second time

Thames Water on Monday launched a second attempt to get its five-year investment plan approved by regulators after its first effort was knocked back.

Ofwat decreed it needed to spend less and deliver more ambitious targets to cut leaks and floods in its plans for 2020-2025.

In an attempt at compromise, Thames on Monday pledged to raise its pollution reduction targets from 18% in its first submission to 30%, cut water supply interruptions by 20% from 6%, and slash sewer flooding in customers’ homes and businesses by 20% from 15%.

Having first said it would keep customers’ bills flat, it promised to cut them by 1.3%.

“I think it’s a very compelling plan and I am very optimistic Ofwat will be happy with it,” said chief executive Steve Robertson.

“We have stuck with the core of the plan which is about investment.”

The overall investment budget, which was criticised by Ofwat as being too lavish, drops from £11.7 billion to £10.9 billion.