Thames Water Faces £40 Million Fine Over Dividends, Sky Says
(Bloomberg) -- UK water supplier Thames Water faces a fine of more than £40 million ($51 million) for breaching rules on dividend payments, Sky reported, citing a source at the company.
Industry regulator Ofwat notified the firm in May that it was minded to levy a fine over dividends that were paid despite the company’s poor performance.
Thames Water can appeal the proposed penalty before any final decision is made, likely now after the UK general election on July 4, it added. Ofwat declined a request for comment from Sky.
The company, which serves about a quarter of the UK population, is in financial crisis after investors refused to inject cash needed for improvements and after its parent company defaulted on debt.
©2024 Bloomberg L.P.
