Enforcement case into Thames Water's compliance with its obligations under Licence Condition P30
| Date | 19 December 2024 |
Summary of Ofwat’s proposed decision
On 19 December 2024 Ofwat published a consultation notice (the ‘Notice’) setting out our proposed decision to impose a financial penalty on Thames Water Utilities Limited (‘Thames Water’). The Notice followed our provisional finding that Thames Water contravened Condition P30 of its Instrument of Appointment (‘Licence’) when making dividend payments in October 2023 and March 2024.
Condition P30 is a new licence condition which came into effect on 17 May 2023. Under Condition P30, companies are required to ensure that any dividends declared or paid are done so only in accordance with a dividend policy which has been approved by the company’s Board and which complies with the following principles:
- that dividends declared or paid will not impair the ability of the regulated company to finance its business, taking account of current and future investment needs and financial resilience over the longer term;
- that dividends declared or paid take account of service delivery for customers and the environment over time, including performance levels, and other obligations; and
- that dividends declared or paid reward efficiency and the effective management of risks to the regulated...
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