The UK’s largest water company plans to invest a record amount on improving infrastructure after paying heavy compensation over leakage failures.
Thames Water will spend £11.7 billion on upgrades for the period 2020-2025, according to its five-year business plan submitted to regulator Ofwat on Monday.
It includes £2.1 billion to “boost resilience and reduce leakage”, the water provider for London and Thames Valley said.
In June, the company – which supplies more than 15 million people – was ordered to pay a total of £120 million to compensate customers over leakage failures.
The five-year plan will cut leaks by 15%, reduce pollution incidents by almost one-fifth, and generate enough green energy to power 115,000 homes, Thames Water said.
External shareholders will receive “modest distributions” of around £20 million annually, the company added.
CEO Steve Robertson said: “Bills will be flat in real terms over the five-year period and our shareholders will receive annual distributions of around £20 million as we prioritise investment on significantly improving service.
“Our responsibilities to the environment and customers are huge, and we will partner with them and our peers to insulate our region from the effects of changing climate patterns.
“I am really excited about delivering on these proposals and ensuring London and the Thames Valley has the modern and high-quality waste and water network its residents rightly expect.”