Thames Water must appoint independent monitor to oversee progress
Thames Water must also build a business plan to turn around its performance and work towards an equity raise – meaning securing investment – as part of the regulator’s requirements.
The country’s biggest water supplier breached its licence agreements after losing its “investment-grade” credit ratings, which indicates whether its debt is of good or bad quality, and meaning it is even harder for the firm to borrow money.
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Hide AdIt must now meet the commitments set by the regulator until it regains two investment-grade credit ratings.


Thames Water is in the grip of a funding crisis having built up more than £15 billion of debt, and with only enough money to continue trading until the end of May 2025.
In a statement, Ofwat said on Friday: “Ofwat has today confirmed the implementation of commitments from Thames Water, effective immediately, to remedy its licence breach in losing its investment grade credit ratings. This follows a public consultation.”
Ofwat said the commitments are built around four key elements.
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Hide AdThese include the appointment of an independent Monitor to report on the company’s progress, including against its transformation plan.
The independent monitor will report back to Ofwat frequently and will be entitled to access company information.
Another element includes the development and delivery of a suitable operational business plan to achieve a turnaround. It must also take the steps required to deliver an equity raise and make new non-executive director board appointments, Ofwat said.
These enforceable commitments, known as ‘undertakings’ are offered by Thames Water to Ofwat under Section 19 of the Water Industry Act 1991.
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Hide AdIn a statement issued earlier in August, Ofwat chief executive David Black said: “We are clear that Thames Water needs to remedy its licence breach, turn around its operational performance, and secure backing from investors to restore its loss of investment grade credit rating.”
“These enforceable commitments will include our putting an independent monitor into the business, to report back to us on what is happening to drive meaningful change in performance, and to ensure appropriate expertise is added to their board.
“We will continue to monitor progress very closely and will not hesitate to take any further action if necessary.”
In a statement issued earlier this month, Thames Water said: “We note that Ofwat is minded to accept the undertakings we have proposed, but understand the need for them to consult before doing so.
“We remain focused on working with Ofwat to secure an investible PR24 determination (the outcomes framework for the 2024 price review), which is key to attracting equity into the business.”
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