Ofwat boss voices concern over water profits

Writing in The Daily Telegraph, Ofwat Chairman Jonson Cox, has voiced his concern over water profits and taxation.

He said: "It has also been alleged that some companies use shareholder loans to avoid UK taxation.

"At the same time, hard-pressed customers have seen annual bills rise by 13.5pc since 2010-11, while their incomes have fallen.

"I agree that the dichotomy between profits and the prices charged to customers raises business, regulatory and moral questions."

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Thames Water in tax row

The UK's biggest water company paid no corporation tax and received £5 million credit from the Treasury during a year in which revenues hit £1.8 billion. Thames Water made £549 million in underlying pre-tax profits as it raised bills by 6.7%.