Five things we learnt this week
Alternative bidder rekindles interest in Thames
Castle Water has restated its interest in acquiring Thames Water, after talks broke down between the embattled water company and US-based investor KKR. KKR was selected as Thames’ preferred bidder in March. However, Thames Water announced that KKR is no longer “in a position to proceed and its preferred partner status has now lapsed”.
Cunliffe review moots greater powers for Ofwat
Sir Jon Cunliffe has put forward his initial thinking as part of The Independent Water Commission’s review of the sector, which includes: backing calls for regional and national planning; greater powers for Ofwat; and clarifying different regulatory duties to remove duplication in functions.
Cadent and SGN to pay £8m for missing callout targets
Cadent and SGN will pay a combined £8 million to Ofgem’s Energy Redress Fund after failing to meet their targets for attending gas emergencies in the required timescales. Cadent has agreed to pay £1.5 million, while SGN will pay £6.5 million – split £5.8 million for its southern network and £700,000 in relation to its Scottish activities.
Parasite outbreak sends Pennon into the red
South West Water’s parent company, Pennon Group, has announced a loss of £35.1 million for 2024/25, compared to the £16.8 million profit made the year before. The company said the loss was largely driven by a £21 million spend in relation to the cryptosporidium outbreak, and a £16.6 million overhead relating to its wider restructuring activities. The company has also ruled out a hosepipe ban this summer.
DESNZ pushes through Capacity Market termination fee
The government will move forward with plans to introduce a termination fee for unproven entrants in the Capacity Market for failing to deliver their bids. Under the new rule, participants who fail to demonstrate agreed Demand Side Response (DSR) capacity by the deadline will be fined £5,000/MW, in addition to the existing loss of credit set at £5,000/MW.
