Live updates

Thames Water: the numbers

  • Paid no corporation tax
  • Received a £5million credit from the Treasury
  • Revenues rose by £1.8million
  • Made £549million in underlying pre-tax profits
  • Increased bills by inflation-busing 6.7%
  • Chief Executive Martin Baggs will receive pay rise to £450,000 plus a £274,000 bonus
  • Mr Baggs in line to collect a further £366,000 next month as part of a long-term incentive plan
  • Firm said its taxable profits were reduced by allowances on its £1 billion-a-year investment programme
  • Leakage of 646 million litres a day, up from 637 million litres

We recognise, however, that regardless of these exceptional circumstances, we have not always provided the best service to our customers.

Over the past financial year exceptional weather conditions have presented tough challenges for the business.

The period began with a drought, following the driest two-year period on record, and ended with widespread flooding after becoming England's rainiest 12 months on record.

Despite these challenges we have for the third year running carried out a further £1 billion of improvements to our networks, while the average household bill in our region is the second-lowest in the country."

– Martin Baggs, Chief Executive, Thames Water

Thames Water paid no corporation tax as bills soared

Thames Water, the UK's biggest, which supplies homes in Wiltshire, paid no corporation tax and received a £5million credit from the Treasury, in the same year that its revenues rose by £1.8million.

It made £549million in underlying pre-tax profits, at the same time raising bills by 6.7%.

The figures come in the wake of criticism by Jonson Cox, chairman of regulator Ofwat, that the high profits and tax-reducing corporate structures of some water companies were 'morally questionable'.

Thames Water said its taxable profits were reduced by allowances on its £1 billion-a-year investment programme, and remaining gains were offset by tax losses claimed from other members of the group.


MP welcomes water bill reductions but says there is more to do

Water users in the South West had the first good news they've had in many years today. Their bills are actually going down for a change. While consumers nationally face an average increase of 3.5%, South West Water bills are going down by just over 7%.

But they are still the highest in the country.

Adrian Sanders MP (Lib Dem, Torbay) says that although the South West's bills are coming down closer to the national average, water bills generally should not need to be increased above inflation. He has been talking to our Political Correspondent Bob Constantine in London.