UK regulator 'minded' to investigate Thames Water shareholder payments as part of wider probe

If Ofwat formally decides there’s a rule breach, the utility could be fined and a significant penalty would put further pressure on its finances.

Under new rules introduced last year, water companies with poor financial and environmental records aren’t allowed to pay dividends. Thames has the worst record on leaks and is struggling to stem sewage spills.

A UK regulator said it is “minded to” investigate Thames Water payments to shareholders as part of a wider probe.

Ofwat’s move to take action against struggling utility Thames Water, comes as questions have arisen around why shareholders were paid millions of pounds in dividends last year despite poor performance.