Davey calls on “sinking ship” Thames Water to rule out increases

The leader of the Liberal Democrats Ed Davey has called for Thames Water to rule out further bill increases this year, and has reiterated his party’s call for the government to finally put the failing water company into special administration.

Thames Water’s appeal to the Competition and Markets Authority (CMA) for further bill hikes has been paused whilst negotiations about its debt pile and future financial security are ongoing.

This comes after the CMA agreed to hike bills for five water companies earlier this month – overturning the ruling of the regulator, Ofwat, which had set prices increases at an average of 36% over the next five years.

The decision on Thames Water has been deferred until late October while the firm tries to sort a rescue bid.

Thames Water customers have faced an average bill increase of £17 a month for the 2025-26 financial year, despite the water company continuing to pollute waterways across the South with filthy sewage, whilst failing to fix leaky infrastructure.

Alongside the Liberal Democrat MP for Wokingham Clive Jones, Ed Davey built and rode a raft on the lake at Dinton Pastures in a visit to Wokingham.

Controversial Reading-Woodley cycle route reaches milestone

Former Reading FC twins closing in on move to Premier League club

After disembarking the raft, Ed Davey emphasised that Thames Water is a “sinking ship” that needs to “finally put customers first.”

It has been another difficult month for Thames Water, with BBC Radio 4 reporting that the company has been giving out customer information over the phone without completing adequate identity checks.

Residents in Berkshire have borne the brunt of Thames Water’s never-ending mismanagement. \during the summer, Berkshire residents faced a hosepipe ban that is still ongoing, meaning their access to water has been restricted whilst their water bills have skyrocketed.

Meanwhile, ongoing repair work to a sewer in Wokingham will mean that there will be disruption to the crucial Evendons Lane until at least Christmas.

Ed Davey said:b “It is unacceptable that people are paying higher bills for shoddy services, whilst Thames Water continues to pump disgusting sewage into our beautiful rivers.

“I am calling on Thames Water to finally put their customers first, by categorically ruling out any further bill increases for residents, both here in Berkshire and across the rest of the south.

“This sinking ship of a water company has to be put in special administration, so its spiralling debt can be written down and the interests of their 16 million customers can be protected, not exploited.”

Liberal Democrat MP for Wokingham Clive Jones said:

“Time and time again, Thames Water are letting their customers down and it is beyond unacceptable.

“I am appalled about how their incompetence is impacting my constituents in Wokingham and residents across the Thames Valley with higher bills and poorer services.

“Thames Water’s constant ineptitude also highlights how we need a new regulator that actually has the teeth to hold water companies accountable.”

A Thames Water spokesperson said: “Investing in our services and providing support to customers with their bills is incredibly important to us.

“For us to continue to deliver billions of litres of clean water and take wastewater away from millions of homes, it’s vital that we invest in our network and infrastructure over the next five years.

“We offer comprehensive support for customers struggling to pay their bill, rated among the best in the sector.

“We’re already helping around 450,000 customers pay their bills, and by 2030, one in ten households will be in receipt of support, including a discount of 50% on their bill.

“We would encourage any customer that is concerned about their ability to pay to reach out to us so we can assess the right package of support for their circumstances.

“We are focussed on working with London & Valley Water consortium and all stakeholders to finalise a holistic market-led solution that is deliverable, will return Thames Water to an investment grade credit rating and benefit customers, the environment, taxpayers and the UK economy.

“A SAR doesn’t fix Thames Water’s problems. It will delay the delivery of improvement for our customers and the environment. It will be disruptive, add risk and uncertainty, increase costs, hinder our operational turnaround and does not fix the balance sheet.

“In addition, SAR does not change the regulatory requirements on the business, and any exit from a SAR would require a regulatory landscape that supports investment.

“The Court process earlier this year included evidence that both our economic regulator and the Company Pension Trustees have outlined their concerns of a special administration.”