31 August 2024, 14:03 | Updated: 31 August 2024, 14:11
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Environmental campaigner Fergal Sharkey has told LBC News Thames Water is to blame for the state of its own finances after the supplier proposed bill increases of almost 60%.
Earlier this week, the water industry warned that firms will be unable to deliver reforms such as stopping sewage outflows without the rise in costs for consumers.
Despite Ofwat’s proposition that water bills can only rise an average 21%, Thames Water have themselves proposed a 52% rise in bills by 2030 – a figure that could rise to 59% if it is given extra spending allowances by the regulator.
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Mr Sharkey has told LBC News the cost of the company’s financial troubles shouldn’t be passed on to customers.
He said: “They (Thames Water) are simply trying to extort if not blackmail the 15 million customers they have in the greater London area and indeed the government.
“You may have noticed during the week there was that incredible petulant outburst by the whole industry, stamping their foot and demanding that if they weren’t allowed to put up water bills by 40, 50, 60 per cent in some cases, that they were going to undermine the government’s attempts to deal with the housing crisis and build 1.8m houses.
“It’s an extraordinarily arrogant thing for the industry even suggesting they could hold a nation to ransom like that, that if we don’t meet their ends they are going to undermine the future of people being able to get a house.”
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Thames Water said separately on Wednesday that the planned curbs meant it could not attract the fresh investment it desperately needed from investors.
Britain’s biggest supplier has more than 15 billion pounds worth of debt and said last month it only has enough money to continue trading until May 2025.
Yet Mr Sharkey has little sympathy for the company and has called on others to join him in the March for Clean Water on October 26 as he, according to River Action, calls for Sir Keir Starmer “to take immediate and decisive action to end the poisoning of our rivers, lakes and seas”.
Read more: Thames Water says it has to raise bills by 59% over next five years
Speaking to LBC News, he said: “The simple goal is we now need to flood the streets with our fury and our anger and it’s time to let the government and the industry know we’ve had enough – we’re not taking it, you’re not putting our bills up 60 per cent.
“If they’re in trouble their shareholders have got to pay for it. It’s time we turn our own outrage into action, so on October 26th go to March for Clean Water.”
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Thames Water said the main driver of the increase is “due to an update to our customer numbers which sees a customer reduction from our original plan”, as well as previously forecast increases in spending.
Chris Weston, chief executive of Thames Water, said: “We want to deliver a considerable increase in investment in our infrastructure, with total expenditure of £20.7bn in our core plan and a further £3bn through gated mechanisms.”
He added: “The money we’re asking for from customers will be invested in new infrastructure and improving our services for the benefit of households and the environment.
“They are not being asked to pay twice, but to make up for years of focus on keeping bills low.”