Thames Water Is Shite


Thames Water Wastes Water

Monday 12 August 2013

Thames Water Applies For Price Hike

Thames Water 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 October 2011
  • 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!

Monday 10 June 2013

Taxing Times For Thames Water

Sky News reports that Thames Water paid no corporation tax and received £5M credit from the Treasury, whilst increasing its charges to customers by 6.7%.

By happenstance Jonson Cox, chairman of regulator Ofwat, said that the high profits and tax-reducing corporate structures of some water companies were "morally questionable".

Companies are perfectly at liberty to avoid tax. However, given that Thames Water reduces part of its tax bill by tax allowances on its investment program, it is ironic that Thames Water saw leakage of 646 million litres a day, up from 637 million litres (blamed on the cold weather).