Thames Water - comment

Ofwat is cracking the whip on the highly leveraged UK water sector where dividend payments are now frowned upon. It is thinking of imposing a £40 million fine on Thames Water for a £37.5 million dividend payment that was paid by Thames Water to its shareholders via Kemble in the fall of 2023. What is eye-opening here is that the fine amount is bigger amount than the actual dividend payment. The company has the right to appeal over the proposed fine before a final decision is made (most likely after the general election) but clearly Ofwat is making an example here with Thames Water…