Our five-year plan from 2025 to 2030

Since the submission of our PR24 business plan to Ofwat in October 2023, we've made some small changes to parts of our plan. These have been in response to requests from Ofwat or other regulators and to clarify some points in our original plan. In addition to this, we have had extensive engagement with the regulators to better understand the expectations for investment in AMP8 in relation to the:

• Water industry national environmental programme
• Industrial emissions directive
• Security and emergency measures direction

The result of these changes to date is that Ofwat are now considering a PR24 business plan for Thames Water that includes:

• Total expenditure of £19.8bn (up from £18.7bn in our October 2023 plan)
• Average annual customer bills of £608 by 2030 (down from £611 in our October 2023 plan)

We expect Ofwat's draft determinations will be based on this expenditure and these bills.

The increased investment in our capital programme doesn't result in a higher bill for customers. This is offset by the removal of some operational expenditure scope relating to the industrial emissions directive. Our regulators have clarified this doesn't need to be undertaken.

We're also proposing a “deliverability adjustment mechanism” for AMP8 which will cover £1.9bn of investment relating to WINEP8, IED and SEMD. We don't believe this work is deliverable in AMP8 and should therefore not be funded by customers at this time.

Subject to making good progress on our AMP8 investment programme, and demonstrating an increased supply chain capacity, then Ofwat could approve this investment to be funded by customers. If all of the funding was approved in AMP8, this could potentially lead to an average customer bill of £627 by 2030.