Thames Water shareholders demand 40pc bill rise after cutting off funding

The owners of Thames Water have refused to provide a £500m cash injection to prevent its collapse as they renew demands for household bills to increase by 40pc. A consortium of pension funds and foreign states on Thursday announced they would stop funding the company and accused Ofwat, the regulator, of rendering it “uninvestable”. They previously committed to providing £500m to the company before the end of this month, as part of an overall £3.75bn funding package through to 2030. But their move stoked fears that Thames, which supplies a quarter of UK homes, may now have to be renationalised at a potential £5bn cost to taxpayers. Jeremy Hunt, the Chancellor, said the Treasury was monitoring the situation closely but insisted the company was “still solvent”, while Thames executives stressed there was no threat to water supplies. The crisis has erupted as Ofwat is considering the company’s business plan for 2025 to 2030, including a controversial proposal to raise bills by an average of almost £200 per household. Thames says the increase is essential to cover its operational costs, pay for infrastructure upgrades to reduce storm overflows and generate sufficient returns for its investors. The company, which has an £18bn...

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