REGULATOR: MORE WATER STRIFE AHEAD OFWAT: WE DIDN’T HAVE POWERS TO STEP IN ON DEBT

NICHOLAS EARL

WATER suppliers will not be allowed to rack up debts and underinvest again following Thames Water’s financial troubles, the boss of industry watchdog Ofwat vowed yesterday.

Chief executive David Black (pictured) told the House of Lords yesterday that it can now “stop dividends” and “lock cash coming out of companies” if water firms are not in robust financial shape.

However, he stopped short of ruling out further suppliers reporting financial troubles in an industry weighed down by a £65bn debt pile – with Thames Water just one of multiple water companies burdened with debt.

“We have got the safeguards to stop the cash moving out of companies [but] clearly, we’ve got companies in positions that do require injections of equity. We still have the legacy of