Thames Water has agreed to delay a possible appeal over how much it can charge for customer bills while talks over a refinancing deal with potential buyers take place.
The 海角视频鈥檚 biggest water firm said it had agreed with Ofwat to defer the case until further notice.
It had previously asked the water watchdog to refer its price review to the 海角视频鈥檚 Competition and Markets Authority (CMA).
Thames Water covers a large area of London and the Thames Valley as well as Oxfordshire, Berkshire, Wiltshire and Gloucestershire. The company slumped to a 拢1.65bn annual loss in July and is is on the brink of nationalisation as it struggles under a mountain of debts.
It is among a number of utilities firms urging regulators to allow them to charge customers more for bills than previously granted, having argued that what was allowed by Ofwat was not enough to support investment and improvement plans.
Doing so was 鈥渋n the interests of our customers and the environment鈥, Thames said in February. Deferring the potential appeal comes after a group of its investors offered a rescue deal for the troubled utility firm.
London & Valley Water submitted a turnaround proposal earlier this month which is currently being scrutinised with regulators.
A spokesman for the consortium said: 鈥淭oday鈥檚 announcement and the further extension agreed follows discussion with Ofwat, EA (Environment Agency) and DWI (Drinking Water Inspectorate) and continued progress to develop a sustainable solution which will deliver improvements for Thames Water鈥檚 customers, employees and the environment.
鈥淲e will continue to work at pace with all stakeholders with a view to concluding discussions and agreeing the terms of a transaction as soon as possible, achieving an outcome that is first and foremost in customers鈥 interests and avoids the unnecessary cost, risk and delay of a special administration.鈥
A spokesman for Ofwat said: 鈥淭hames Water has requested a further deferral of its 2024 Price Review final determination reference to the Competition and Markets Authority (CMA).
鈥淕iven the ongoing discussions with the company鈥檚 creditors, Ofwat has agreed to this request and informed the CMA.
鈥淭hames Water and Ofwat agree that at this point in the review process there is no benefit in setting a definitive expected end date for the deferral decision.鈥
