Thames Water Utilities Limited

14 February 2025

Thames Water requests referral of its Final Determination to the Competition and Markets Authority

Thames Water Utilities Limited ("TWUL") has today asked its economic regulator, Ofwat, to refer its Final Determination to the Competition and Markets Authority (CMA) for a re-determination. 

The Board of the UK's largest water and wastewater services company made this unanimous decision after concluding that the Final Determination for the regulatory period 2025 to 2030 does not appropriately support the investment and improvement that is required for Thames Water to deliver for its customers, communities and the environment for the next five years.  

The Chairman of Thames Water, Sir Adrian Montague said: "We have taken the decision to refer our Final Determination to the Competition and Markets Authority in the interests of our customers and the environment. We are focused on putting the business on a long-term stable footing so we can succeed in our turnaround, and build and maintain an infrastructure that supports growth and can withstand the effects of climate change. 

"We put forward a realistic business plan for 2025-2030 that addressed our customers' and stakeholders' priorities such as providing safe and resilient water supplies and improving performance. After careful consideration, our analysis shows that our Final Determination for the next regulatory period will continue to impact our ability to fund the improvements our customers and the environment so rightly want and deserve." 

The challenges of its Final Determination 

Throughout the Price Review 24 (PR24) process, Thames Water has engaged with Ofwat to seek to secure a Final Determination that recognises its current position and supports its turnaround. While there has been progress, after a thorough review, it is clear that there remain significant gaps between the Final Determination and what it needs to deliver for customers and the environment. In its referral to the CMA, it is seeking:  

·      A regulatory settlement that reflects the circumstances of Thames Water's operating area

·      Targets that are challenging but achievable 

·      An appropriate balance of risk and return  

There will be no delay to the delivery of Thames Water's plans for year one of AMP8 as a result of this referral. Customer bills for 2025-26 will be unaffected. 

Full details of its statement of case will be provided to the CMA in due course and in line with the process timetable.  

-Ends-

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Information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as amended and as it forms part of United Kingdom domestic law ("UK MAR") until the release of this announcement. For the purpose of UK MAR and Article 2 of Commission Implementing Regulating (EU) 2016/1055 as it forms part of United Kingdom domestic law, this announcement is made by Chris Weston (Director) at Thames Water Utilities Limited.

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