Henley MP introduces bill to stop Thames Water 'dodging fines'
Freddie van Mierlo says tougher action is needed to improve service standards
The MP for Henley and Thame has introduced a new bill in Parliament aimed at stopping water companies like Thames Water from delaying the payment of fines.
Freddie van Mierlo says the proposed legislation would close what he describes as a loophole allowing firms to “negotiate away” penalties issued by regulator Ofwat.
It comes after Thames Water was handed a record £122.7 million fine following two investigations into wastewater breaches and dividend payments - the largest penalty ever issued by Ofwat.
However, under current rules, companies can request enforcement plans and appeal payment timelines.
Thames Water has already been granted a delay, with the fine now not due to be fully paid until March 2030.
Mr van Mierlo said this undermines accountability: “If you don’t have consequences for breaking the law we are letting the companies get away with it."
A Thames Water spokesperson responded saying: “Water companies do not have ‘the right to change payment dates’. Under legislation, a company may apply to Ofwat to request a payment plan, and it is then a matter for the regulator to agree to a plan or reject it.
“When it agreed to this payment plan, Ofwat said the plan continued to hold Thames Water to account but also recognised the company’s ongoing equity raise and recapitalisation process."
Mr van Mierlo also pointed to concerns about sewage and water infrastructure, which he says are a regularly raised by residents.
He described visiting constituents whose property is repeatedly affected by sewage flooding due to overloaded systems.
“This elderly couple are literally shovelling sewage from their driveway,” he said. “That is an appalling situation.”
He believes that the current privatised model is “not working” and suggesting Thames Water should be taken into special administration.
The Thames Water spokesperson said: "Thames Water takes its responsibilities to customers and the environment very seriously and is currently delivering the biggest upgrade to its network in 150 years.”
While acknowledging the bill is unlikely to pass before the end of the current parliamentary session, Mr van Mierlo says he will continue to push for change: “If the government doesn’t introduce its own legislation, I’ll be reintroducing this bill.”
The government is expected to bring forward proposals on water regulation in the next King’s Speech.