The increased costs include:
- Increases in bad debt as a result of the economic downturn
- Increases to Environment Agency charges
- The costs of operating and maintaining the additional 40,000 km of sewers that were transferred to Thames Water by the government in October 2011
- Costs of land acquisition and other preparatory work required for the construction of the Thames Tideway Tunnel
There is of course another option, outwith cutting their cost base, they could reduce the dividends paid to their shareholders.
Will they do this?
Will they fark!