ThamesWater splurged millions of environmental ‘clean-up’ money on other costs including bonuses and dividends, it was claimed yesterday.
It was also reported managers held talks to assess the risk of a backlash if it emerged cash for work such as cutting river pollution was spent elsewhere.
The allegations suggest there were fears the spending could be a breach of licence and leave the firm open to accusations of law breaking.
But Thames continued to pay bonuses worth hundreds of thousands, as well as millions in dividends as recently as March, while cutting back on spending promises.
Internal deliberations about axing the schemes occurred as early as 2021, according to claims.
But it continued to charge customers for the works, and regulator Ofwat was only formally told about their plans not to deliver these major projects in August 2023.
ThamesWater splurged millions of environmental ‘clean-up’ money on other costs, it has been claimed (File image)
It was also reported managers held talks to assess the risk of a backlash if this news emerged (File image)
The firm blamed rising costs for delaying 98 of 826 schemes in an industry-wide programme during the five-year window it promised.
Their delivery was a key justification for how much it could charge customers.
Ofwat fined the firm £18.2million last week for paying ‘unjustified’ dividends, but also gave Thames permission to increase bills by 35 per cent by 2030.
A Thames spokesman did not deny some of the environmental work funds had been used for bonuses and dividends, as reported by The Guardian, but said it was ‘fully committed’ to delivering all its commitments.
