1 October 2007
Ofwat's decision to fine Thames Water £12.5 million has been welcomed by uSwitch; however the price comparison and switching service has expressed concern over the effect such a penalty could have on the overall service households receive.
The fine - £11.1 million for failing to provide 'robust information' and a further £1.4 million for poor service - follows last year's probe by the water industry regulator.
But uSwitch remains concerned as to the potential affect such a large fine could have on the future maintenance of the Thames Water network, and the quality of service customers receive.
Tim Wolfenden, Head of Home Services at uSwitch.com said: "It's good to see Ofwat sticking up for the consumer, but if this large fine is imposed it could divert money away from the vital investment needed in our worn out water systems."
"If this is not to be a case of 'cutting off the nose to spite the face' any action taken by Ofwat must be balanced and in consideration of what serves the consumer interest best," he warned.
In June Thames Water announced a £1 billion investment in fixing 540km of leaky pipes in the London area.
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