Thames Water's chief executive, Chris Weston, has been compelled to justify the payment of £770,000 in bonuses to senior executives.
This comes in light of the company registering a substantial £190 million loss and witnessing a concerning 40% hike in pollution incidents within its semiannual financial results, as reported by .
Weston insists that to draw and retain high-calibre personnel capable of revitalising the beleaguered utility, competitive compensation is necessary, despite Ofwat, the industry regulator, recently slamming the practice of charging customers for what it deemed "undeserved bonuses."
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"We need to attract talent to this company," Weston asserted. "If we don’t offer competitive packages, people will not come and work at Thames."
These remarks synchronized with Thames Water revealing further grim financial figures, demonstrating the difficulties it faces as it desperately seeks vital funding to avert being nationalised. The losses of the water giant soared to an alarming £189 million in the first half of its fiscal year, exacerbated by penalties from Ofwat and soaring credit losses leading to it listing extraordinary charges of over £427 million for the six months ending 30 September.
At the same time, its publicised debt levels climbed to an overwhelming nearly £16 billion Whilst the company hurriedly tries to gain approval for a potential £6.5 billion rescue plan composed of new capital, borrowing, and delayed debt maturities.
Earlier this year, the company issued a warning that its liquidity would only last until April 2025. However, in November, it managed to secure a financial package from creditors, pending approval by the High Court, which is expected to deliver a judgement next week.
Thames Water is also actively seeking new equity investors, following commitments made to Ofwat in August after the utility's credit rating took a hit, failing to meet the regulator's standards. On Tuesday, CEO Sarah Bentley, who joined Thames Water a few months ago after tenures at British Gas and Aggreko, reported "considerable interest" from potential equity investors.
Nevertheless, she cautioned that the company's funds could run dry if the court does not sanction the financial rescue plan, a situation that might lead to temporary nationalisation. During the same period, Thames Water saw a 40% rise in pollution incidents, which Bentley attributed to "record rainfall and groundwater levels" within the company's catchment area, revealing 359 category one to three pollution incidents over the past six months.