Macquarie Won’t Be Able to Run Southern Water Like Thames: Ofwat

Ofwat chief executive says new rules will block dividends
Australian group has faced criticism for big payouts at Thames

Southern Water is blocked from paying dividends to shareholders until at least 2025.Photographer: Carlos Jasso/Bloomberg

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By Jess Shankleman and Lucca de Paoli

November 26, 2024 at 2:52 PM UTC

This article is for subscribers only.

Macquarie Group won’t be able to repeat the practice of paying hefty dividends from Southern Water Ltd. in the same way that it did while it ran Thames Water, the UK regulator’s boss said on Tuesday.

Macquarie has drawn criticism for taking out high dividends while it part-owned and managed Thames Water from 2006 to 2017, with the company at risk of running out of cash early next year unless a rescue deal is agreed. The Australian group has owned a majority stake in Southern Water since 2021, another UK utility struggling with an onerous debt pile.