Ofwat rules out customers paying £195,000 Thames Water boss bonus

Published On Nov 20, 2024, 1:00 PM

Ofwat, the UK's regulator, is set to announce that Thames Water's chief executive's £195,000 bonus should not be funded by customers. Instead, the burden of such bonuses should lie with the company's owners and lenders. Thames Water is struggling financially, having debts of £18 billion, and might run out of cash by Christmas. After Ofwat's preliminary decision, Thames Water's owners declined to inject additional funds due to insufficient allowed bill increases. Lenders are prepared to provide up to £3 billion in high-interest loans, and proposals to restructure the company are being developed. The sector faces regulatory challenges, with no immediate plans for nationalization.