In October 2023, Thames Water Utilities Limited presented its PR24 business plan for the 2025-30 regulatory period (“AMP8”) to Ofwat, suggesting a total expenditure of £18.7 billion, more than double the current five-year regulatory period’s investment level.
Since its submission last October, TWUL has extensively discussed the content of its PR24 business plan with regulators and key stakeholders.
Following this engagement, TWUL has announced the submission of an updated PR24 business plan, reflecting a £1.1 billion increase in AMP8 total expenditure to £19.8 billion, allocated to environment-benefiting projects.
TWUL states that by rebalancing operating and capital expenditures, the company can deliver more environmental projects without resulting in an increase in projected customer bills, estimated to average £608 by 2030.
TWUL has expressed its intention to continue seeking opportunities for increased investment in AMP8 and has proposed placing a further £1.9 billion of potential investment into a “Deliverability Assessment Mechanism.” If TWUL were to invest the full £1.9 billion in AMP8, average annual customer bills would increase by an additional £19 over that period.
Chris Weston, CEO of Thames Water, emphasized, “Our business plan prioritizes our customers’ needs. As part of the ongoing discussions related to PR24, we have updated it to deliver more projects beneficial to the environment. We will continue to engage in discussions with our regulators and stakeholders.”
In response to this development, Mike Keil, Chief Executive of the Consumer Council for Water (CCW), remarked, “The proposal for increased investment from Thames Water appears to be a positive step for its customers, who have experienced some of the poorest customer service in the sector.
However, we should not overlook the fact that only 16% of its customers found the company’s proposed bill increases in its five-year plan to be affordable. This announcement seems to offer no relief to those already facing difficulties in paying.”
Source :Thames Water
