- 5 updates
There's evidence that Thames Water's attempts to add 490 million pounds to its customers' water bills has badly backfired. The industry regulator, Ofwat, has refused permission for the rise - and we've learned that the firm could now face a "clawback" of money it has already taken.
Our Consumer Editor Chris Choi explains.
Ofwat's decision to reject Thames Waters' bid to increase prices by 8% is final, but Thames Water could appeal to the Competition Commission.
The company said: "We will review the decision carefully before deciding on our next steps."
Water regulator Ofwat has turned down Thames Water's application for an additional price increase for 2014 to 2015.
Ofwat says it was for Thames Water to justify the proposed 8% increase was in customers’ interests.
Within the three month timescale for assessing the application, the water regulator found the evidence the company submitted did not justify its proposed £29 additional increase in customers' bills.
Ofwat’s decision means the maximum that Thames can add to customers’ bills for 2014-15 is still 1.4% above inflation, as set in the 2009 price review.
Water regulator Ofwat has rejected a bid by Thames Water for an additional price hike for 2014 to 2015 of 8%.
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