Thames Water is being investigated over late delivery of environmental improvement schemes, the industry regulator has announced.
Ofwat said the enforcement case against the company, currently fighting to secure its financial future amid a £19bn debt pile, aimed to determine whether it had breached its legal obligations.
The watchdog said that Thames itself had been in contact to alert it and the Environment Agency that it will be unlikely to deliver more than 100 of 812 improvements it had promised by a 31 March deadline.
The schemes fall under the Water Industry National Environmental Programme (WINEP) during the current 2020-2025 pricing period.
That ends at the end of March when Thames customers then face steep, inflation-busting increases to bills over the next five years from April to pay for further infrastructure improvements which include widespread storm overflow upgrades to prevent sewage spills.
Lynn Parker, Ofwat’s senior director for enforcement, said: “Customers have paid for Thames Water to carry out these essential environmental schemes.
“We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations.
“If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right.”
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