CCW sets out “non-negotiable” principles for Ofwat as it deals with Thames

(by Karma Loveday)

The Consumer Council for Water (CCW) has set out some “non-negotiable” principles that it has urged Ofwat to follow as it works on the long-term sustainability of Thames Water.

In a letter, CCW chair Rob Wilson told Ofwat chair Iain Coucher to pay heed to the following as it assesses any current or future proposal from creditors or candidates to become Thames’ new owners:

• No special treatment on enforcement — Thames Water must be held fully accountable for past and future performance.

• Full alignment with the sector’s incentive regime — there must be no dilution of performance commitments or outcome delivery incentives.

• No higher bills than those agreed under PR24 or determined by the CMA — customers must not bear additional costs arising from past failures of management or ownership.

Wilson said: “Any deviation from these principles would seriously undermine consumer confidence, risk weakening the regulatory framework, and could encourage further challenges from companies across the sector. It would also be fundamentally unfair for customers who have endured years of underperformance.

“Thames Water customers want — and deserve — real change. They recognise that investment is needed and they are prepared to support it when it is tied to measurable improvements. What they should not be asked to accept are short-term fixes or arrangements that shield owners or creditors from risk while leaving customers exposed.”

The letter also argued that with 16 million customers, Thames Water’s stability is critical to the legitimacy and performance of the entire water sector in England and Wales.  Moreover that customer confidence in Thames Water is at a historic low at 5.12 out of 10; that customers face unprecedented bill increases of 35% before inflation across 2025–2030 at a time when many are already struggling to afford essential costs; and that complaints to CCW from Thames Water customers have “surged sharply and remain exceptionally high. This demonstrates not only the scale of the performance issues but also the depth and persistence of customer frustration.”

Wilson said he would welcome a response from Ofwat setting out its position in relation to the three principles.