The Times water was handed over a record fine of 122.7 million pounds by Offat after two delicious investigations into the largest water benefit in the United Kingdom.
The organizer found that the company has violated major obligations related to wastewater operations and issued illegal profits despite the poor performance of the environment and customers.
Ofwat confirmed this morning that 104.5 million pounds of the fine relates to serious failures in the company’s water infrastructure – the largest financial penalty imposed by the organizer ever. Another amount of 18.2 million pounds has been imposed on the violations related to profit payments, which represents the first time that Offa has been punished for the profit distribution decisions that failed to reflect its performance.
The organizer seized temporary profits, which reached a total of 37.5 million pounds, which was issued in October 2023 and 131.3 million pounds paid in March 2024. As a result of taking enforcement measures, it is now prevented from issuing profit distributions without explicit approval.
“Our investigation has revealed a series of failures by the company to build, maintain and operate adequate infrastructure to meet its obligations. The company also failed to reach an acceptable recovery package that would benefit the environment, so we imposed a major financial penalty,” said David Black, CEO of Offat.
This step comes amid increasing general and political pressure on the environmental performance of water companies, especially with regard to pollution and wastewater spills. “The government launched the most difficult campaign against water companies in history,” said Environmental Minister Steve Reed said.
The company will carry the fine and its shareholders, not customers.
Times Water, which provides drinking water to 10 million people and wastewater services to 15 million across London and the Thames Valley, was swinging on the brink of financial collapse for more than a year. Its current shareholders – including OMERS, the Canadian pension fund, and the sovereign wealth interests of China and Abu Dhabi announced that it was “invested” last year and removed their property.
In a recent attempt to stabilize the company, the Times Board of Directors chose KKR as its preferred bidding. KKR has provided a cash injection of 4 billion pounds in exchange for control, but the deal depends on the complex negotiations with Offat on fines and future performance goals. The total Times Water debt is approximately 20 billion pounds, and creditors are expected to take heavy networks under the current rescue plan.
Bening to the CommonS Environment Select committee earlier this month, the Times President Sir Adrian Montage and CEO Chris Weston said that the company’s future is now dependent on the results of the conversations with the KKR and the organizer. Without an agreement, they warned against persistent failure penalties – which could exceed one billion pounds over five years – completely risked investors.
The current Offat goals include improvements in pollution accidents, electric current leakage, customer service, and all areas where the Times is water less than continuing. Experts warn against not negotiating the re -negotiation of these goals can leave the Times unable to attract new financing or improve their credit classification from the scrap condition.
In the event that the investment booth and the company are unable to refinance, the ministers and organizers may have to intervene directly, putting the Times water in a special management – effectively returning the tool to general control.
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