Thames Water . Where does your cash Go ?

 Thames Water

Shareholder Funding Update

Shareholders agree to provide a further £750 million of equity funding in AMP7, with the acknowledgement that significant additional funding will be required during AMP8 (2025-2030), to further improve operational performance and financial resilience (as summarised in this announcement)

In accordance with the commitment made by shareholders in June 2022, Thames Water drew down £500 million of new equity funds on 30 March 2023.  This June 2022 commitment was made by shareholders to support the delivery of Thames Water's business plan for the current AMP7 regulatory period ending 31 March 2025 to improve performance and outcomes for customers, reduce leakage, improve river health, and accelerate delivery of Thames Water's turnaround. This equity funding provided by shareholders has helped reduce gearing to its lowest level in a decade.

Since the June 2022 commitment, shareholders have continued to work with the Thames Water Board and Executive on plans to provide additional equity funding to drive Thames Water's turnaround over the remainder of the current regulatory period (AMP7) and to establish a solid foundation for its long-term growth. 

Accordingly, Thames Water's shareholders have agreed to provide a further £750 million in new equity funding across AMP7. This further funding is subject to satisfaction of certain conditions, including the preparation of a business plan that underpins a more focused turnaround that delivers targeted performance improvements for customers, the environment and other stakeholders over the next three years and is supported by appropriate regulatory arrangements. 

Shareholders have also acknowledged that delivery of the Turnaround Plan will require the provision of further equity support in AMP8, significantly in excess of the current AMP7 commitment.  Indicatively, the AMP8 equity support is expected to be in the region of £2.5 billion, but the nature and level of such medium-term support will depend on the finalisation of the business plan and the regulatory framework that will apply to the AMP8 period. 

Thames Water will carefully monitor progress towards satisfying the conditions for the additional shareholder funding and will keep under review pathways to ensure Thames Water's continued financial resilience. In the meantime, Thames Water remains focused on delivering a safe and reliable service to its customers and the environment while work continues on implementing and accelerating the turnaround.

Thames Water continues to maintain a strong liquidity position, including £4.4 billion of cash and committed funding, as at 31 March 2023.

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Too many Chiefs , not enough cash for the Indians as usual .

Investment in Infrastructure has been dreadful over the years since Privatisation .

But , the BOD & Shareholders have done very very very nicely