Southern Water rows back on plans to pay out £275m in dividends
The TelegraphSouthern Water no longer plans to hand out £275m in dividends after claiming the payments are not “appropriate”. The reversal comes after Southern Water’s initial business plan, which is still available on its website, listed annual dividend payments between 2025 and 2030. “This is in addition to the £1.6bn already injected by shareholders since 2021 – more than any dividends ever paid.” The U-turn on planned dividends comes as the company pursues plans to raise nearly £4bn of fresh debt, as well as £650m from shareholders. While Southern does not face an immediate cash crunch like Thames, there are fears of contagion throughout the UK’s water sector if Ofwat refuses to allow a significant increase in household bills. Southern, along with Britain’s other water companies, is currently negotiating with Ofwat to see how much bills can rise over the next five years in a process known as the 2024 price review.
History of this topic
Thames Water slapped with £18m fine by Ofwat for dishing out 'unjustified' dividends
Daily Mail
Brits get soaked again! Check how much YOUR water bill is going up by after watchdog signs off massive hikes... with some places facing 53% rise PLUS inflation
Daily Mail
Thames Water under threat of nationalisation as shareholders refuse to inject £500m lifeline
The Independent
Thames Water dividend payouts in spotlight after shareholders pull funding
The Independent
Thames Water asked to explain how dividend payment does not break Ofwat rules
The Independent
Southern Water ‘considering bill rises of 73%’
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