Latest news with #WINEP
Yahoo
12-02-2025
- Business
- Yahoo
New blow for Thames Water as watch-dog threatens huge fines over environmental failings
Embattled Thames Water was hit by a fresh blow today after it was told by its regulator it faces the threat of multi-million pound fines after it had failed to complete more than 100 environmental protection projects. Ofwat said it is opening an investigation into whether London's water supplier is in breach of its legal obligations through the 'delayed delivery of environmental improvement schemes' that customers have already paid for through their bills. The investigation marks the start of an enforcement action that could lead to a fine up to 10% of the turnover of the relevant subsidiary of the Thames Water group, which serves 16 million people in the capital and parts of southern England. It comes as the utility waits to hear from a judge whether Thames Water can press ahead with a proposed £3 billion financial restructuring that will save it from a temporary renationalisation. Thames has more than £16 billion of debt. Thames Water committed to deliver 812 environmental schemes as part of the Water Industry National Environmental Programme (WINEP) from 2020 to 2025. These were to improve the quality of water in the Thames and other rivers and water courses in its catchment area such as the Pang and the Mole, and to prevent sewage flooding. Ofwat said: 'Completing these environmental schemes on time is essential for companies to ensure that they are compliant with statutory requirements. However the regulator said that 'Thames Water alerted Ofwat and the Environment Agency that it will be unlikely to deliver more than 100 of these environmental improvement schemes on time, by 31 March 2025.' Lynn Parker, senior director for enforcement at Ofwat, said: "Customers have paid for Thames Water to carry out these essential environmental schemes. We take any indication that water companies are not meeting their legal obligations very seriously. 'Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations. If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right." A Thames Water spokesperson said: 'We note Ofwat's decision to open an enforcement case into the delayed delivery of WINEP7 and will cooperate fully. Customers will not pay twice for investment that has already been funded through customer bills. 'We've been very open about the challenges of delivering all the elements of our WINEP 7 programme, which has been impacted by cost increases that are higher than the inflation index applied to our allowances. We informed Ofwat of this in August 2023. We remain committed to delivering all our WINEP commitments.' Thames Water is locked in a dispute with Ofwat about how much it can put up bills over the next five year period. The regulator has said they can only rise by 35%, in today's money, while the company has asked for a 53% increase. Thames Water must decide within days whether to formally appeal to the Competition and Markets Authority. Sign in to access your portfolio
The Guardian
12-02-2025
- Business
- The Guardian
Regulator investigates Thames Water over delayed environmental schemes
Thames Water is being investigated by the water regulator for England and Wales, Ofwat, after it delayed environmental improvement schemes. The investigation comes after the Guardian revealed that the UK's largest water company intentionally diverted millions of pounds pledged for environmental clean-ups towards other costs, including bonuses and dividends. Ofwat has opened an enforcement case into the company to decide whether it has breached its obligations in failing to deliver 100 out of 812 schemes it was supposed to put in place between 2020 and 2025. These environmental measures are part of the Water Industry National Environmental Programme (WINEP) and they include protecting and enhancing rivers, upgrading sewage systems to reduce spills, reducing the amount of water abstracted from rivers and improving the safety and quality of designated bathing sites. Water companies have to deliver these on time as part of their statutory requirements with the regulator; failing to do so means enforcement action can be taken including fines. The WINEP deal is a condition for water companies being able to increase bills. Lynn Parker, the senior director for enforcement at Ofwat, said: 'Customers have paid for Thames Water to carry out these essential environmental schemes. We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations. If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right.' Consumer groups are concerned the failure to deliver environmental schemes, which are supposed to be paid for with funds from water bills, means that people in the Thames area will have to pay twice. Thames has been mired in problems for months. The company faces serious financial issues and is heavily indebted, with speculation rife over whether it can survive in its current form or whether it may eventually have to be renationalised. Matthew Topham, the lead campaigner at We Own It, said: 'To protect the interests of shareholder and creditors, the board have put the safety of Londoners and Thames Valley residents, and our environment, at risk. It's official privatised water can only continue to function by cheating the public. 'We should not have to pay again for infrastructure we have already paid for. Ofwat must cancel its bill rise at Thames and ask ministers to bring the firm into public ownership so it works for people, not profit.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Thames Water denied anyone will have to pay twice and said that the company remains committed to its environmental pledges. In its response to the Guardian's report in December, Thames said sharp increases in its costs such as energy and chemicals – which it claims went beyond standard measures of inflation – lay behind its decisions to delay the works. A Thames Water spokesperson said: 'We note Ofwat's decision to open an enforcement case into the delayed delivery of WINEP7 and will cooperate fully. Customers will not pay twice for investment that has already been funded through customer bills. We've been very open about the challenges of delivering all the elements of our WINEP 7 programme, which has been impacted by cost increases that are higher than the inflation index applied to our allowances. We informed Ofwat of this in August 2023. We remain committed to delivering all our WINEP commitments.'
Sky News
12-02-2025
- Business
- Sky News
Thames Water faces investigation over late delivery of environmental schemes
Thames Water is being investigated over late delivery of environmental improvement schemes, the industry regulator has announced. Ofwat said the enforcement case against the company, currently fighting to secure its financial future amid a £19bn debt pile, aimed to determine whether it had breached its legal obligations. The watchdog said that Thames itself had been in contact to alert it and the Environment Agency that it will be unlikely to deliver more than 100 of 812 improvements it had promised by a 31 March deadline. The schemes fall under the Water Industry National Environmental Programme (WINEP) during the current 2020-2025 pricing period. That ends at the end of March when Thames customers then face steep, inflation-busting increases to bills over the next five years from April to pay for further infrastructure improvements which include widespread storm overflow upgrades to prevent sewage spills. Lynn Parker, Ofwat's senior director for enforcement, said: "Customers have paid for Thames Water to carry out these essential environmental schemes. "We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations. "If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right." The regulator ultimately has the power to fine the relevant part of the business up to 10% of its annual turnover. Previous, and recent, penalties paid by Thames include an £18m fine in December for breaking shareholder payout rules while it was also slapped with a £104m bill last summer for sewage failings. 2:31 Thames Water is grappling pressure over improvements to its day-to-day operations while scrambling to secure its financial future. It has previously warned it will run out of money next month, raising the prospect of the utility entering a special administration regime, unless new financing and new equity is secured. The company's preferred rescue plan is currently hanging in the balance due to a High Court fight between bondholders. Thames is also yet to confirm whether it will appeal Ofwat's final ruling on how much it is allowed to raise bills by during 2025-30. The average water and wastewater bill across England and Wales is set to go up from £480 to £603 during 2025/26 alone - an increase of about £10 a month. Thames Water's 16 million customers face a 31% hike to £639 - a rise of £151. It had sought an increase above 50% across the pricing period.
Yahoo
12-02-2025
- Business
- Yahoo
Thames Water faces investigation over late delivery of environmental schemes
Thames Water is being investigated over late delivery of environmental improvement schemes, the industry regulator has announced. Ofwat said the enforcement case against the company, currently fighting to secure its financial future amid a £19bn debt pile, aimed to determine whether it had breached its legal obligations. The watchdog said that Thames itself had been in contact to alert it and the Environment Agency that it will be unlikely to deliver more than 100 of 812 improvements it had promised by a 31 March deadline. The schemes fall under the Water Industry National Environmental Programme (WINEP) during the current 2020-2025 pricing period. That ends at the end of March when Thames customers then face steep, inflation-busting increases to bills over the next five years from April to pay for further infrastructure improvements which include widespread storm overflow upgrades to prevent sewage spills. Lynn Parker, Ofwat's senior director for enforcement, said: "Customers have paid for Thames Water to carry out these essential environmental schemes. "We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations. "If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right." This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest version. You can receive Breaking News alerts on a smartphone or tablet via the Sky News App. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.
