Thames Water

Parent Company: Kemble Water Ltd *

Regulated utility: Thames Water Utilities Ltd

Ownership: Investment banks and pension funds

Kemble Water is ultimately owned by Macquarie Bank and other Macquarie-managed funds plus some long term investors principally pension funds

Thames Water is one of the largest water utilities in the UK and certainly the best known. In 2006 it was bought by a consortium led by the Australian Macquarie Bank from RWE. This has led to a complete change around in strategy as the company refocused on its core water and wastewater market in London and the Thames Valley.

Thames Water faces huge problems with the victorian water network in the capital, shortage of water supplies and concerns over pollution of the River Thames. This is compounded by the difficulties of replacing infrastructure in a capital city and the drain on resources that the Olympics will cause. The Government has agreed in principle the huge (about £2.5 billion) Thames Tideway project which will be the biggest ever contract in the water industry. The first stage, the Lee tunnel, is designed to divert half the sewage currently discharged into the River Thames to Beckton STW which is currently being upgraded as part of a £190m project. Work on the Thames Tunnel is not due to be complete until 2020.

The UK's first desalination plant the Thames Gateway plant opened at Beckton opened in May 2010. A huge programme of Victorian water mains replacement is underway and £346m is being invested to reduce sewer flooding. Thames Water has by far the biggest capital investment programme in AMP5 of any water company.

A major business reorganisation is underway with the establishment of an Asset Owner/Service Provider organisation and the implementation of SAP as well as the opening of a new Operations Management Centre.

The company had another very successful year in 2010. It achieved its water leakage target, continued its work to upgrade its five major London sewage treatment works and invested over £1bn to renew aging assets. The key challenge ahead is the long and complex Thames Tunnel where public consultation is underway.

Financial data for regulated utility Thames Water Utilities Ltd

Data for financial year ended 31 March 2011

	Amount
Turnover	£1600 m
Operating Profit	£598 m
Capital Investment	£1006 m

	Amount
Area served	13 300 km2
Population -Water -Waste water	8.7 million 13.8 million
Water -Water supplied a day -Length water mains -Water treatment works	2600 Ml 31 300 km 99
Sewerage -Length of sewers -Waste water treatment works -Sludge produced	67 700 km 349 250 000 te's dry

Address

Thames Water
14 Cavendish Place
London
W1M 0NU

Tel: 020 7636 8686

Web site: www.thameswater.co.uk

Non-regulated business

As part of its current "back to basics" strategy Thames sold its Thames Water Services business to Veolia Water in 2007.

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