Thames Water fine reduced to £10m by Ofwat

Thames Water fine reduced to £10m by Ofwat

The water industry regulator, Ofwat, cut the amount it is fining Thames Water for misreporting and poor customer service from £12.5m to £9.7m yesterday.

The regulator said the problems were caused by inadequate systems at the company but it had not found any evidence of deliberate misreporting and customers' bills had not been affected.

Thames said the breaches had taken place under previous ownership and management and it had reported them to Ofwat as soon as they had come to light.

Ofwat said it was fining Thames £8.3m, the equivalent of 0.6% of its turnover, for misreporting information and a further £1.4m for failing to meet minimum service standards. An Ofwat spokesman said: "A fine of almost £10m is still a significant fine and one of the largest we have ever levied."

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The regulator's chief executive, Regina Finn, said: "Thames Water's systems and processes were inadequate and customers lost out. The penalty reflects the importance we attach to reliable, accurate and complete information and gives a clear signal to both the company and the water sector that non-compliance is not a cheap or easy option."

Ofwat argues that because of the lack of competition in the water industry, poor-quality information makes it hard to make comparisons and damages the regulatory process.

Thames Water said it was pleased Ofwat had accepted its representations that the fine should be proportionate to the impact on customers and taken into account the efforts by the company to make amends.

The regulator said Thames Water's owners had to bear the entire cost of the fine and it could not be passed on to the consumers.

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