The Consumer Council for Water (CCWater) has welcomed Thames Water’s decision to invest an additional £80million into its services.
But the water watchdog remains concerned over the companys claims that it may need to apply to the industry regulator Ofwat to hike its charges again next year to recover additional costs.
The extra investment it has announced will be used to improve the companys water and sewer network, install smart meters for large business customers and improve the management of customers debt.
Thames is the latest water company to respond positively to the watchdogs call for the industry to share its financial success with customers.
But the company’s proposal to further increase its prices next year comes at a time when many customers are struggling in the difficult financial climate.
Sir Tony Redmond, London and South East Chair of the Consumer Council for Water, said: “We welcome Thames Water’s decision to share some of its financial success with customers. However we would like to see the company go further and protect its customers from another price increase.
Many other water companies have shared their profits and have absorbed costs that Thames say they are facing and they have done so without applying for a further price increase. We would like to see Thames do the same.
Seven out of ten Thames Water customers have told CCWater their current water and sewerage bill is affordable, which mirrors the number of customers who consider the company provides value for money.”