According to information obtained by News: Ofwat informed Thames Water last month that it planned to apply the fine for breaking dividend payment regulations.
The move will put additional strain on Thames Water, which is struggling under a debt load of more than £15 billion and may soon be temporarily nationalized.
According to a Thames Water insider, the sanction that Ofwat is considering is noteworthy since it is higher than the £37.5 million that was distributed to shareholders last October.
Before a final decision is reached, the corporation has the right to appeal the proposed fine; however, because of the general election scheduled for July 4, it is doubtful that a final decision will be made until after that date.
Ofwat has already decided to wait until after the election to make its draft decisions regarding the five-year investment and spending plans of the privately held water companies in Britain.
Its first set of decisions was supposed to be announced on June 12.
Its final rulings, anticipated in December, may influence investors’ choices over whether or not to provide funds to support the companies for the ensuing five years.
The corporation is currently experiencing its worst crisis to date as a result of the shareholders’ decision to declare Thames Water “uninvestible.”
