Ofwat tenders for an independent monitor for Thames’ turnaround programme

(by Verity Mitchell)

Ofwat has gone out to tender with a three-and-a-half-year contract, worth an estimated £15.6m, to employ an Independent Monitor (IM) to report on Thames Water’s proposed turnaround programme.

The IM will undertake monitoring and reporting services across a range of issues at the company, including operational performance, financial resilience, governance and asset management. This tender appears to be independent of any decision in regard to Thames’ currently proposed financial restructuring.

The IM will be appointed by Ofwat and will provide recommendations and advice exclusively to Ofwat. The contract cost will be met by the company with no impact on customer bills. It is scheduled to start on 5 November this year and run through until the end of July 2030, with a possible one-year extension.

The move follows Ofwat’s appointment in October 2024 of LEK Consulting as an IM on a 12-month contract, worth £3m, to report on the company’s plans to raise fresh equity as part of a wider transformation plan.