Thames Can’t Get £2.5 Billion It Needs Unless Rules Change
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Thames Water Plc said its £18.7 billion ($22.7 billion) plan to strengthen its finances won’t get funding from investors unless the regulator changes the rules to allow fatter returns.
The UK’s largest water company said delivering on its full business plan, published belatedly on Thursday, rests on getting £2.5 billion additional equity from shareholders for 2025 to 2030. However, it warned that investors can get better returns in UK gilts and investment grade corporate bonds. It called on the Water Services Regulation Authority, Ofwat, to make significant changes to the rate of returns allowed for regulated water companies.