Thames Water agrees to £24.5m payment plan as 'backstop date' set

Thames Water has agreed to pay £24.5 million of its record £122.7 million in fines by September 30 under a payment plan agreed with regulator Ofwat. The industry watchdog, which handed Thames Water the penalties in May, said a fifth of the fines would be due in the initial instalment, with the remaining 80% paid if it agrees a rescue financing deal or is placed into a special administration regime by the Government.

Ofwat said it had set a “backstop date” of March 31, 2030, for the remaining penalties. The fines were originally due to be paid by August 20, but Thames Water requested a payment plan due to its financial difficulties. Thames Water said the fines would not be paid for out of customer bills.

It added: “The company continues to work closely with stakeholders to secure a market-led recapitalisation which delivers for customers and the environment as soon as practicable.”

The penalties follow a series of incidents in which Thames Water was found to have repeatedly discharged untreated sewage into rivers and other watercourses, raising concerns over environmental damage and public health.

The regulator’s decision marked the largest fine ever imposed on a UK water company, reflecting the severity and persistence of the breaches.

Thames Water has faced mounting pressure from both investors and environmental groups to improve its infrastructure and operational standards.

The company’s financial challenges have been compounded by rising operational costs and significant investment requirements to meet regulatory and environmental obligations.

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