Thames Water shareholders have agree to provide a further £750 million (€871 million) of equity funding in AMP7, with the acknowledgement that significant additional funding will be required during AMP8 (2025-2030), to further improve operational performance and financial resilience.
In accordance with the commitment made by shareholders in June 2022, Thames Water drew down £500 million (€581 million) of new equity funds on 30 March.
This June 2022 commitment was made by shareholders to support the delivery of Thames Water’s business plan for the current AMP7 regulatory period ending 31 March 2025 to improve performance and outcomes for customers, reduce leakage, improve river health, and accelerate delivery of Thames Water’s turnaround.
This equity funding provided by shareholders has helped reduce gearing to its lowest level in a decade.
Since the June 2022 commitment, shareholders have continued to work with the Thames Water Board and Executive on plans to provide additional equity funding to drive Thames Water’s turnaround over the remainder of the current regulatory period (AMP7) and to establish a solid foundation for its long-term growth.
Cathryn Ross and Alastair Cochran, interim Co-CEOs of Thames Water, said:
“This announcement is a major milestone for Thames and all our stakeholders.
“Since June 2022, we have engaged constructively with shareholders, working towards a common goal of developing a long term, comprehensive, financeable and enduring business plan for the Company to improve operational performance and financial resilience for the benefit of our customers and the environment.
“The substantial equity support package announced today will underpin the delivery of a more focused turnaround plan that builds on the foundations that have been put in place over the last two years and focuses expenditure on a smaller number of initiatives, which will deliver material and sustainable improvements in key performance metrics over the next three years.”
Thames Water to provide further equity funding
