Thames Water allegedly misled customers over billing payments

Britain’s largest water company Thames Water has allegedly misled customers over the structure of billing payments. There are allegations that the company misled customers by informing them its loans only got a few pennies for every pound they paid on their bills.

The company has a lot of debt but is the biggest water company in Britain. It serves 16 million people in London and the southeast of England.

Thames Water accused of ‘misleading’ customers over level of debt payments https://t.co/VFeECNEb5v
— The Guardian (@guardian) March 12, 2024

It has issued clients a summary of its expenditures in invoices, which include paying 48 pence per pound on infrastructure. In addition, 20 pence on water supply and treatment and 3 pence on lenders.

However, critics of the corporation claimed Thames Water was minimizing the full cost of its £14 billion debt as it spent over 28% of its yearly sales servicing its loans between 2018 and 2023. In this regard, they considered Thames Water allegedly misled customers.

In a similar summary in the annual report of Thames Water, there was a 3-pence figure alongside a disclaimer. It stated it was based on “net cashflows,” which excluded new loans, burrowing repayments, and other financing charges.

The Guardian report suggested only 3p in every pound of bills went to its lenders but in actuality, 28% of its income goes to paying off its loans. Feargal Sharkey is an activist and former Undertones vocalist. He attributed Thames Water to Naughty Boy.

Feargal wrote the company tells users they only use 3% of their water bills to pay the huge debt that the company has. However, the smart people of Guardian think it is more like 27.8%. He also mentioned Thames Water and said you are being bad.

Thames Water accused of ‘misleading’ customers over level of debt payments https://t.co/VFeECNEb5v
— The Guardian (@guardian) March 12, 2024

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Moreover, Feargal Sharkey said it is misleading. If there is one thing they have learned in recent years, it is that they cannot trust water companies. Whether it is about how they pay their debts or how much sewage they deposit.

Andy White is a senior policy leader at the Consumer Council for Water. Andy also stated households have a right to know how water companies spend their money. Bill transparency is critical to rebuilding trust in the sector, which has been at an all-time low for over a decade.

Although the company stated in its bill summary, that Water Thames borrows money at the efficient rate to invest in their network while keeping your bills as low as possible.