Thames Water pays £86M for mis-reporting sewer flood risk
Thames Water will pay a package of £86M for mis-reporting the number of properties at high risk of sewer flooding between 2005 and 2010. The company has committed to a £79M reduction in its regulatory capital value (RCV), and return £7M to customers and the community.
Under the terms of the settlement, Thames will put £2M into its independently managed Thames Water Trust Fund to help customers who are having difficulty paying their bills; and invest £5M to support additional community projects such as local programmes to better protect rivers and improve the natural environment.
Ofwat said it welcomed Thames’s "recognition of the problem and a commitment to put it right by returning money to customers".
Cathryn Ross, chief Executive of Ofwat, said: “We welcome Thames’s co-operative approach which means we have concluded our investigation more quickly and resulted in a better outcome for customers. We are satisfied that Thames has put right the problems that caused the misreporting.
"It’s only fair that when companies make mistakes, they put it right and make sure customers are not out of pocket."
A statement from Thames Water said: “We made a mistake in some of our 2009-10 sewer flooding statistics. Ofwat agree that this was not deliberate and we are pleased they have accepted our package of measures in response. This is a positive result for our customers, communities and the environment.”
Ofwat's investigation found that more properties were recorded as at high risk of sewer flooding than there was evidence to support, which may have led to 'poorly targeted and inefficient spending' of customers’ money. But the regulator said there was no evidence of deliberate misreporting.
It also recognised that between 2005 and 2010, Thames spent an additional £20M of its own money to help deal with sewer flooding problems, and which not come out of customers’ bills.
- Thames Water control and automation services contract win for Boulting Boulting Technology has secured a control and automation services framework with Thames Water covering AMP6. The Lot 1a... Read More >
- Thames Water appeal against £250k fine dismissed A £250,000 fine imposed on Thames Water for polluting a stream near Newbury with raw sewage was justified, a Court of... Read More >
- Thames Water supporting vulnerable customers More than 100,000 Thames Water customers are now getting money off their bills as part of a drive to help those living in... Read More >
- Rewarding excellence WWT content director Alec Peachey looks ahead to next year's Water Industry Awards. Read More >
- Getting to the heart of sewer repair Wessex Water's award-winning Re-Rounder, inspired by heart surgery techniques, helps get deformed sewer networks back into... Read More >
- Through the keyhole: The King's Scholars' Pond project The use of keyhole engineering on Thames Water's King's Scholars' Pond project saved money and carbon while keeping London... Read More >
- Flushed with success: FOG and Unflushables Southern Water's FOG and Unflushables programme has brought a significant improvement in the state of its sewers. Robin... Read More >
- Will SfA8 make as big a splash as hoped? Martin Lambley, product manager for stormwater management at Wavin, looks at whether Sewers for Adoption 8 will meet... Read More >