Freddie van Mierlo MP introduces Bill to Parliament to stop Thames Water dodging fine
Freddie van Mierlo, MP for Henley and Thame, has introduced a Bill to Parliament that would prevent water companies like Thames Water from delaying payment of their fines. This Bill has been co-sponsored by MPs including Oxfordshire’s Layla Moran, Charlie Maynard, Calum Miller and Olly Glover.
The Bill comes after Thames Water were fined £122.7M by Ofwat following two investigations in the company, that revealed breaches on its rules on wastewater operations and dividend payments. This was the largest penalty Ofwat has ever issued.
Legislation currently allows water companies to apply to Ofwat to request an enforcement plan if a penalty is received. The fine was due to be paid in full by August 2025, but Ofwat granted a delayed payment plan to Thames Water with a backstop date of 31st March 2030.
More recently, Thames Water has been in conversation with Ofwat about a proposal that would waive fines going forward for the next four years if the company commit to invest money into fixing issues that would usually incur penalties.
Freddie has previously raised these issues in parliament during PMQs, and the Prime Minister confirmed the government were looking at what they can do to hold water companies to account. Freddie has also written to the Prime Minister calling for the upcoming King’s speech to remove this right to appeal date of payment.
Freddie van Mierlo MP said:
“It can’t go on. The current legislation lets water companies off the hook and Ofwat is doing nothing to stop it.
Thames Water continues to harm communities and individuals, polluting waterways and further increasing bills. Consumers are forced to pay for years of mismanagement, whilst Thames Water has negotiated away yet another fine.
Without enforceable consequences for water companies’ actions, nothing will change. The opening of Parliament in May provides an opportunity for the government to get it right, and close loopholes in legislation that are being abused.
Whilst the government continue to avoid taking meaningful action, I have introduced this Bill to remove the right of water companies to change payment dates. ”