Statement from Mark Lloyd, Chief Executive, in response to the High Court decision about Thames Water’s financial plans: “Despite today’s High Court ruling, the ongoing financial drama at Thames Water shows no sign of abating and merely adds to the public despair and lack of trust in the Water Industry.

“The astounding level of debt and punitive interest rates agreed mean that a large proportion of customer bills will be spent on paying financiers rather than improving the environment, when we know that Thames Water are already not delivering many of their promised environmental improvements. This is a reflection of poor regulation over decades, which has driven companies to debt rather than equity finance, and some very greedy owners who siphoned too much funding out of the company to make themselves rich rather than fix our creaking infrastructure.

Tessa Wardley, Director of Communications & Advocacy, added: “In the wake of this ruling, we welcome and are engaging closely with the Independent Water Commission led by Sir Jon Cunliffe to revamp the water sector for the long term and hope it results in better outcomes for customers and the environment. A central principle for environmental recovery in the short and long term is that polluters must pay for the environmental damage they cause. When fines are levied against water companies they must be used to reverse the harm caused. We have a mechanism for that in the Water Restoration Fund, but the Government is currently stalling on paying that out and there is the risk that future fines will be rerouted to the Treasury. The WRF has widespread support from all stakeholders and is action that Government can take now to help redress the damage caused by water industry and other polluters.”