Thames Water Boss Gets Pay Rise Amid 77% Spike in Complaints

• CEO Chris Weston's total pay package reached £1.16 million, including a £99,000 bonus.
• Customer complaints rose by 77 per cent last year to a total of 122,798.
• Average household bills increased by 31 per cent in April, an average rise of £203.
• Thames Water faces a record £104.5 million fine from Ofwat and net debt of £18.5 billion.
• The utility company warned its current funding may only last until October.

Chris Weston, the Chief Executive Officer of Thames Water, has defended a significant increase in his remuneration package, describing the pay rise as "absolutely deserved." The comments come despite the utility company presiding over a sharp increase in customer complaints and a substantial rise in household water bills for millions of consumers across the region.

Appointed to the role in January 2024, Mr Weston saw his base annual salary rise by 14 per cent to £995,000, effective from 1 April 2024. His total pay package for the most recent financial year reached £1.16 million, a figure that included a £99,000 bonus. The CEO maintains that the compensation is justified by the progress made in turning around the company's performance during a period of intense scrutiny.

However, the pay increase coincides with a challenging period for the company's customers. According to reports in The Mirror, total customer complaints surged by 77 per cent last year, reaching a total of 122,798. Billing complaints were particularly prevalent, nearly doubling to approximately 96,300 following significant tariff increases. In April, average household bills for Thames Water customers rose by 31 per cent, adding roughly £203 to the annual cost and bringing the average bill to £639.

Financially, Thames Water has returned to a post-tax profit of £113 million, a notable shift from the £1.5 billion loss recorded in the previous year. Nevertheless, the firm's financial stability remains under pressure as net debt climbed to £18.5 billion, up from £16.8 billion in the prior period. The industry regulator, Ofwat, recently issued a record fine of £104.5 million against the company for failures in managing its wastewater treatment works. The firm has also utilised the services of restructuring firm AlixPartners, which was paid £2.18 million for the work of Julian Gething, the company's chief restructuring officer.

Environmental performance also remains a concern for the utility provider. While pollution incidents dropped by 18 per cent to 386, the company still missed its regulatory targets. Environment Secretary Steve Reed has described the illegal pollution of waterways as an "unacceptable destruction" that requires fundamental reform. Additionally, the Consumer Council for Water (CCW) rated the utility as 'poor' for its handling of customer disputes and billing issues. Thames Water has warned that its current funding may only last until October, leading to urgent discussions with the government and potential investors regarding the company's future.

Tom Church, Co-Founder of LatestDeals.co.uk, said, "Consumers facing significant bill increases during a cost-of-living crisis will likely find it difficult to reconcile these higher costs with substantial executive pay rises and a decline in service standards."