Thames May Need £1bn
Sunday, December 6, 2009 20:04AN austere regulatory settlement could force the country’s largest water utility to tap shareholders for up to £1bn. Thames Water could raise the money by suspending its dividend for the full five years of the Ofwat’s upcoming price review, industry sources said.
The payout last year was £222m. Alternative would involve a round of job cuts and draconian steps to cut spending. The Mail has already revealed that the firm is considering shifting its Swidon call centre to India or another lower-cost destination.
Ofwat announced a draft decision over the summer to cut household water bills 4pc by 2015. Its final determination is due on Thursday. If it follows through a range of water companies could be forced to suspend dividends and raise money from shareholders.
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