have applied to water regulator Ofwat to charge
customers a one-off surcharge of £29 pounds. Thames Water claim that they have been forced to deal with "unquantifiable" costs
that they were not aware of when Ofwat set price limits back in 2009.
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
- Costs of land acquisition and other preparatory work required for the construction of the Thames Tideway Tunnel
In the real world, companies that are eager to maintain/increase their profits seek to improve customer service, undercut the competition (ie charge less) in order to attract more customers and cut their cost base. In the delusional world of water supply, Thames Water simply opt for the easiest option namely that of charging their hapless customers more for their water. Ofwat will make its decision within 3 months.
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!