Thames Water to pay fifth of record £122.7m fines by end of September

Local TV

Troubled Thames Water has agreed to pay £24.5 million of its record £122.7 million in fines by the end of September under a payment plan agreed with regulator Ofwat.

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00:00Troubled and heavily in debt, Thames Water was handed a record-breaking £122.7m fine

00:10in May for failures over sewage treatment and paying out dividends by regulator Ofwatt.

00:18Now it has agreed to pay it by the end of September, but only £24.5m, which is a fifth.

00:27The remaining 80% is dependent on the financial security and future of the debt-laden water

00:34supplier as it teases on the brink of a possible temporary nationalisation, meaning the majority

00:42of the fines may not be paid for up to five years Ofwatt said the remainder will be paid

00:50by the 30 calendar days after it secures a rescue financing deal and there is enough cash

00:56liquidity in the business or if it is placed into a special administration regime by the

01:04government 30 calendar days after it exits the insolvency process.

01:10Ofwatt said it had set a final backstop date of March 31, 2013 for the remaining penalties.

01:18The fines were originally due to be paid by August 20, but Thames Water requested a payment

01:25plan due to its financial difficulties Ofwatt announced the fines after it said an investigation

01:33into Thames Water's sewage treatment works found a series of failures by the company to

01:40build, maintain and operate adequate infrastructure.

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