Thames Water agrees to £24.5m payment plan as 'backstop date' set

Thames Water has agreed to pay £24.5 million of its record £122.7 million in fines by September 30 under a payment plan agreed with regulator Ofwat.

The industry watchdog, which handed Thames Water the penalties in May, said a fifth of the fines would be due in the initial instalment, with the remaining 80% paid if it agrees a rescue financing deal or is placed into a special administration regime by the Government.

Ofwat said it had set a "backstop date" of March 31, 2030, for the remaining penalties.

The fines were originally due to be paid by August 20, but Thames Water requested a payment plan due to its financial difficulties.

Thames Water said the fines would not be paid for out of customer bills.

It added: "The company continues to work closely with stakeholders to secure a market-led recapitalisation which delivers for customers and the environment as soon as practicable."

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