Thames Water to pay just under 20% of it's debt by September 30
The water company amassed a record £122.7 million debt from regulator OFWAT
Last updated 27th Aug 2025
Thames Water has agreed to pay £24.5 million of its record £122.7 million in fines by September 30 under a payment plan agreed with regulator Ofwat.
The industry watchdog, which handed Thames Water the penalties in May, said a fifth of the fines would be due in the initial instalment, with the remaining 80% paid if it agrees a rescue financing deal or is placed into a special administration regime by the Government.
Ofwat said it had set a "backstop date" of March 31 2030 for the remaining penalties.
The fines were originally due to be paid by August 20, but Thames Water requested a payment plan due to its financial difficulties.
Thames Water said the fines would not be paid for out of customer bills.
It added: "The company continues to work closely with stakeholders to secure a market-led recapitalisation which delivers for customers and the environment as soon as practicable."
David Black, chief executive at Ofwat, said:
"This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment.
"Our investigation has uncovered a series of failures by the company to build, maintain and operate adequate infrastructure to meet its obligations.
"The company also failed to come up with an acceptable redress package that would have benefited the environment, so we have imposed a significant financial penalty.
"This decision provides certainty for the company for both its past failures and what we expect from the company to comply with its obligations in future.
"The company is seeking new buyers to fund its turnaround to provide better services for customers and the environment by improving operational performance and financial resilience.
"This provides a clear opportunity to break with the past, Thames Water will now need to correct the issues our investigation has identified."
Ofwat said Thames Water would pay £104.5 million for wastewater breaches - the largest fine imposed by the watchdog - and a further £18.2 million for breaking rules relating to dividend payments.