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10th December 2024
01:58pm GMT
The boss of Thames Water has defended handing out executive bonuses while his firm calls for a hike in customer bills to ensure its survival.
Chris Weston said the supplier needed to offer 'competitive packages' to attract talent, but the water regulator has previously said that customers must not foot the bill for 'undeserved bonuses'.
It comes as the company saw a 40 per cent increase in pollution incidents in the six months leading up to 30 September.
Mr Weston blamed this on a wet spring and summer period and said that problems with its infrastructure were 'decades in the making'.
According to its latest set of results, its debts continue to rise. At the end of September, the businesses debts stood at just under £16bn.
Thames approaches a critical moment next week, with Ofwat set to decide whether to allow a proposed 59% increase in consumer bills over the next five years.
The firm has said customer bills need to rise or else it will not be able to recover from its financial crisis.
Despite this, bosses got £770,000 in bonuses. Critics have argued the water industry has historically neglected investment in favour of paying executive bonuses and shareholder dividends.
But today, Mr Weston defended bosses bonuses and said he appreciates some customers struggle paying their bills. Mr Weston, who was hired in January, was also awarded a bonus of £195,000 for his first three months at the company.
The regulator Ofwat recently blocked three companies, including Thames, from using customer money to pay executive bonuses as bills have steadily increased.
A decision on whether Thames can increase its bills by 59% is due on 19 December.
Ofwat has also appointed an independent monitor to supervise Thames Water as it attempts its turnaround.
The company could run out of money in the first quarter of next year which is why its creditors have offered a further £3bn cash loan to be released in two parts.
It is waiting for a court date next week to approve the cash injection which could prove pivotal as it would mean it had enough money to last until October next year.
