Thames Water to pay £18m penalty after breaking dividend rules

Regulator Ofwat penalises struggling utilities firm and announces bills can rise by more than third over five years

• Water bills for households in England and Wales to rise by £31 a year

Thames Water will have to pay an £18.2m penalty after the water industry regulator confirmed the troubled utilities company had breached dividend rules.

The Guardian revealed on Wednesday that Thames would be penalised over two dividend payments, made in 2023 and 2024, and that it would allow the water company to increase bills by just over a third. The industry watchdog Ofwat confirmed the penalty and bills rise on Thursday.