"It wants to use about 20.5bn of consumers' cash to prioritise key activities but deliver fewer projects than under a deal set out by water regulator Ofwat. People familiar with the London & Valley Water proposal said last year's final determination the highly detailed plan of how much suppliers can charge consumers was not deliverable and the new plan offered value for money."
"The four-page summary of the plan describes significant writeoffs by investors across the capital structure but does not yet detail how significant these will be. Instead, it will fix the foundations of Thames Water and set a clear pathway to addressing current compliance gaps. The financial setup for Thames proposed by the creditors, including how much of a haircut investors will take on the debt, is being discussed with Ofwat this week."
London & Valley Water, a consortium of creditors, proposes using about £20.5bn of consumers' money to prioritise core activities while delivering fewer projects than Ofwat's final determination. The proposal says last year's final determination was not deliverable and positions the new plan as offering value for money to make Thames viable and avoid temporary nationalisation of the company that serves 16 million customers. The four-page summary signals significant investor write-offs, aims to fix Thames' foundations, and sets a pathway to close compliance gaps. The financial structure and investor haircuts are being negotiated with Ofwat and will be reviewed by credit ratings agencies.
Read at www.theguardian.com
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