Yahoo Finance Thames Water warns ageing assets could ‘pose a risk to public safety’
Thames Water has warned that it has £19bn in assets that could “pose a risk to public safety” in a report to Ofwat outlining the embattled water supplier’s five year business plan.
The report, which was submitted by Thames Water to Ofwat in October 2023, said it has £19bn in assets that are either in “poor condition” or “no longer capable of reliably performing their function,” which could “pose a risk to public safety, water supply and the environment.”
First reported by the Financial Times, the UK’s biggest water company said in its report the problems range from disintegrating water and sewage pipes to out-of-date technology and reservoir shortages.
Among the risks includes Cryptosporidium oocysts, a parasitic disease found in drinking water that can cause diarrhoea, which has been detected 43 times since 2018.
However, Thames Water has said it has already begun improvements on its water supply.
“Our water is among the highest quality drinking water in the world – and since 2010 more than 99.95% of tests taken from customers’ taps met the standard required by UK legislation,” a Thames Water spokesperson said.
“Every year we carry out more than 500,000 tests, taking samples from source to tap.”
The report outlined a range of proposals to Ofwat, including a rise in household bills to help aid in the water supplier’s crippling debt pile of £18bn, which the regulator is expected to make a decision about on 11 July.
Ofwat did not respond to City A.M. for comment.
The Financial Times said the household bills hike could see bills rise by £471 a year now to £749 in 2029-30, assuming a 2 per cent inflation rate.
Thames Water has said it has enough cash to last until May 2025. But, as the company’s infrastructure was installed before privatisation 34 years ago, the assets are depleting its budget.
