Thames Water - comment

Originally due for today, Thames Water has agreed to defer its appeal to the CMA regarding Ofwat’s determined pricing and dividend structure - without setting a new date. As per Ofwat’s rules, water bills are to rise 36%, hardly enough to allow Thames Water to fix its Victorian pipe system and attract capital for it in the first place. We see this as a positive development, possibly clearing the way for a simpler path to the same result in the end.