Ofwat today set out in greater detail its reasons for proposing in September 2007 to fine Thames Water a total of £12.5 million.
The economic regulator has issued a ‘variation notice’ as an open, robust and transparent response to initial consultation which followed its original proposal to fine the company.
Ofwat proposed the penalty because Thames’ reporting systems were inadequate. Neglect and low business priority on reporting non-financial data led to the company failing to provide robust information. This had damaged the regulatory process, requiring a substantial fine.
There will be a further consultation period on the variation notice after which Ofwat will make its final decision.