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UK water regulator Ofwat has proposed a series of measures it would seek to impose against Thames Water after the UK’s biggest water utility breached its licence conditions.
Ofwat said on Wednesday that it would appoint an independent monitor to report on the company, and told Thames to develop a new business plan, raise fresh equity and appoint new non-executive directors.
The company breached its licence conditions last week when Standard & Poor’s became the second agency to cut its credit rating to junk.
David Black, chief executive of Ofwat, said: “We will continue to monitor progress very closely and will not hesitate to take any further action if necessary.”
Ofwat’s proposals are open for consultation until next week.
