Thames rejects analysis claiming its emergency credit will cost each customer £50

Advocates of public water ownership have criticised the Thames emergency funding package, saying it will cost each customer £50 extra a year.

We Own It today published analysis by Professor David Hall of the Public Services International Research Unit at the University of Greenwich, which argued the £3bn credit package, charged at an interest rate of 9.75%, implied annual interest payments of £292.5m a year. Divided between 5.8m Thames household customers, this suggested a cost of £50.7 per annum per household. This would come on top of bill rises set out in Thames’ AMP8 business plan, We Own It warned.

Supported by a number of clean water campaigners, the group called on the Government to put Thames into special administration.

Responding, a Thames Water spokesperson said: “This is an untrue and misleading analysis that risks needlessly worrying our customers. We’ve been very clear that the proposed £3bn liquidity extension will not change what we are asking for in our response to Ofwat’s draft determination and it will not increase our proposed ask on customer bills over the next five years.

“This is an interim funding solution as we work through necessary next steps to stabilise the business further, with a view to delivering an investable and financeable business plan.”