As customers face paying 30% more to stop leaks

More bad news for Thames Water customers could be on the cards as industry experts predict a 30% rise in bills to help pay to stop the leaks.

The news comes in the same week that Thames Water announced it has been bought out by Australian bank Macquarie. The new owners have already been warned by consumer watchdogs that they would have to improve on RWE's "deeply disappointing" ownership of Thames Water.

However, as number of Thames Water bosses made huge personal fortunes from the sale, customers have been left to face an enormous hike in their water bills to pay for the essential maintenance and modernisation of the ageing pipe systems. Barely a week passes when another burst main hits the news, causing chaos to the very people would pay for its repair.

John Lawson, Chairman of Institute of Civil Engineers Water Board told one newspaper “Even if they were to replace all of the pipes, it would not be enough; Thames needs to work on a range of projects. Bill increases are inevitable and I would expect to see 30% added to bills to fund this work.”

Thames has been criticised for missing leakage targets and imposing a hosepipe ban and is facing fines of tens of millions of pounds from Ofwat for failing to meet customer performance standards.

David Bland, the chairman of the Thames Water Consumer Council, said the takeover should not distract managers from getting to grips with the "dubious legacy" RWE had left behind. "Not only was RWE's stewardship of Thames Water deeply disappointing, they have now departed half a billion pounds richer. They must be throwing their hats in the air, having profited massively without resolving any of the long-term issues Thames Water faces.”

Traders along the Chiswick High Road will be incensed at this latest development with some claiming that the ongoing works that have caused so much mess and noise pollution is costing their businesses thousands of pounds in lost revenue a week.

October 23, 2006