Thames Wuf 60 Regulatory News (BK64)

Thames Water Utilities Finance plc

Shareholder Funding Update

28 March 2024

In July 2023 Thames Water Utilities Limited ('Thames Water') announced that its shareholders had agreed to provide a further £750 million in new equity funding across the current regulatory period (AMP7), the first £500 million tranche of which was anticipated by 31 March 2024.

This funding was subject to satisfaction of certain conditions, including the preparation of a business plan that underpins a more focused turnaround that delivers targeted performance improvements for customers, the environment and other stakeholders over the next three years and is supported by appropriate regulatory arrangements. 

Since the submission of its PR24 Business Plan on 2 October 2023:

· Thames Water's Board approved its three-year turnaround plan and its implementation is underway; and

· Thames Water has been in dialogue with Ofwat to seek feedback on its business plan as part of the PR24 process.

Based on the feedback provided by Ofwat to Thames Water to date, the regulatory arrangements that would be expected to apply to Thames Water in AMP8 make the PR24 plan uninvestible. As a result, the conditions of the support letter from July 2023 have not been satisfied and the first £500 million of the new equity that had been anticipated will not be provided by Thames Water's shareholders by 31 March 2024.

Discussions with Ofwat and other stakeholders are ongoing. Thames Water aims to secure a PR24 regulatory determination that is affordable for customers, deliverable and financeable for Thames Water, as well as investible for equity investors. Following receipt of the draft PR24 determination (expected in May/June 2024), Thames Water intends to pursue all options to secure the required equity investment from new or existing shareholders.

Thames Water has liquidity of £2.4 billion of cash and available committed facilities, as at 29 February 2024.

Chris Weston, CEO of Thames Water said: 'I'd like to reassure our customers that, despite this announcement, it is business as usual for Thames Water. Our 8,000 staff remain committed to working with our partners in the supply chain to provide our services for the benefit of our customers, communities and the environment.'

For investor enquiries please contact

David Gregg - Director of Corporate Finance

Sarah Davies - Head of Investor Relations

debt.investorrelations@thameswater.co.uk

For media enquiries please contact  Suvra Jans

Head of Media Relations

07747 640 810

Suvra.jans@thameswater.co.uk 

Or

Sarah Long

Head of Turnaround Communications

07747 646985

Sarah.long2@thameswater.co.uk

Information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as amended and as it forms part of United Kingdom domestic law ("UK MAR") until the release of this announcement. For the purpose of UK MAR and Article 2 of Commission Implementing Regulating (EU) 2016/1055 as it forms part of United Kingdom domestic law, this announcement is made by David Gregg (Director) at Thames Water Utilities Finance plc.

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