Thames H2O reported a 40 per cent increase in sewage pollution to 359 incidents in the six months to September.
Thames H2O’s prestigious government has defended bosses getting a £770,000 bonus despite pressure from regulators and the company’s mounting debt over a plum air pollution report.
Chris Weston has said that Thames H2O must “attract talent” by offering a “competitive package”.
He said some consumers are “struggling with their expenses” but said the company announced bill relief to about 377,000 consumers in the last year.
Thames H2O has more than £16bn of debt and is seeking at least £3.3bn of equity over the next five years. It has faced rising power since March, when traders deemed it no longer “investable” and withheld new capital.
Ofwat has placed Thames H2O in special measures, requiring the company to submit a “delivery action plan” as part of proposals to improve its efficiency in dealing with leaks and sewage spills.
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In October, the utility supplier signed a £3 billion disaster loan to maintain operations until 2025. Weston said the investment puts the company on a “more stable financial position” as it looks for a long-term strategy for financial flexibility.
On Tuesday, he said the company had reached a “significant milestone” in the beginning of a more robust financial position.
“The next important step is to achieve a final determination of investability which is fundamental to our future,” he said.
Ofwat had previously rejected the company’s request to increase customers’ aqua spending by 44 per cent over the next five years. The regulator will deliver its final decision on Thames H2O’s five-year marketing strategy on December 19, which will include proposals for customer bill increases and investment.
air pollution report
Thames H2O remains under investigation over its poor air pollution report, as well as being fined £104 million for failing to control its waste water treatment operations and network.
Weston attributed this to the length of the particularly rainy spring and summer season.
“Following record rainfall and groundwater levels in our region, pollution and spills have unfortunately increased; However, we are increasing pipe relining and cleaning, and the historic Thames Tideway Tunnel, now in its testing phase, is already reducing overflows into the tidal River Thames,” he said.
The company reported seizing 589 million liters of sewage in a 24-hour period through the Thames Tideway Tunnel and Lee Tunnel.
shopping
Thames H2O is the subject of a bid by several investment groups looking to acquire the debt-laden supplier.
Covalis owns stakes in primary European infrastructure companies, including German energy giant RWE. Suez, a reputable water services and products supplier in France with approximately 5,000 employees in the United Kingdom, will assume an advisory role within the partnership.
Its focus will be on helping Thames H2O control modernize operations through implementing modern IT methods and complex spill tracking generation.
Then, Suez will no longer hold any captured stock in Thames H2O. The federal government would stock a “golden share” within the company, giving it a seat on the board and special rights.
Another reported bid to acquire Thames H2O was all set to come from Fort H2O, a Sovereign Trade Aqua store. The Scottish utility company is co-owned by Conservative Party treasurer Graham Edwards and former funding banker John Reynolds.
According to the PA information agency, Fort H2O plans to make a £4bn offer for a majority stake in Thames H2O.
Alternative reported bids are expected to come from Hong Kong company CK Infrastructure Holdings and private equity giant KKR, which jointly hold a private stake in Northumbrian H2O.
PA media contributed to this file.
