Thames Water’s Future Hangs on Ruling Over Investor Payouts
- Watchdog is investigating dividends paid to parent firm Kemble
- Decision on whether Thames broke rules expected in weeks
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Thames Water is waiting for a verdict on whether it broke regulations by paying millions of pounds to investors last year. A ruling against the company may mean more fines or, at worst, push it into administration.
Water utilities with a poor financial and environmental record aren’t allowed to pay dividends. Industry watchdog Ofwat is investigating whether Thames, the UK’s biggest supplier, breached license conditions by funneling a payment to its parent, Kemble Water.