Thames Water Flashcards
(13 cards)
What percentage of the UK population does Thames Water serve?
About 25% (15 million people).
Why is Thames Water considered a natural monopoly?
Because of high fixed and sunk costs, making one provider more efficient than many.
What regulatory body oversees Thames Water?
Ofwat.
How are prices regulated for Thames Water?
Through the RPI-X price cap formula.
What was the average annual bill for Thames Water in 2023–24?
£436.
What is X-inefficiency, and how does it relate to Thames Water?
It occurs when monopolies lack incentives to minimize costs; high leakage rates suggest X-inefficiency.
How much water did Thames Water leak daily in 2022–23?
Around 630 million litres per day.
What is one major negative externality caused by Thames Water?
Sewage pollution in rivers.
How much does Thames Water plan to invest between 2020–2025?
£11.5 billion.
What is the current debt burden of Thames Water?
Over £14 billion.
What is the role of Ofwat in regulating Thames Water?
To enforce price controls and ensure performance standards.
What fine did Thames Water receive from Ofwat in December 2024 and why?
£18.2 million for breaching rules on dividend payments unrelated to performance.
Why was Thames Water fined in August 2024 and how much ?
For repeated sewage spills and failure to manage wastewater infrastructure.
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