Water industry regulator Ofwat is calling for a step change in the way Thames Water behaves and operates.

Chairman Jonson Cox said Ofwat sees “an urgent need for Thames Water to make a step change in the way it operates and behaves.”

Ofwat wants the water company, with support from new investors Canadian Borealis and Middle-Eastern Wren House, to adopt the following steps:

• Far-reaching improvement in its communication with all the company’s customers
• An annual audited statement from the Thames Board with a specific focus on how the utility has set its aspirations and performed for customers
• Greater transparency and clarity about the financial returns to the company’s investors each year
• A review of the Board composition to ensure a standard of independence
• Demonstrate that appropriate weight is given to performance for customers as well as financial performance when setting management rewards

Jonson Cox is calling on Thames to adopt the five commitments quickly. saying this “would help demonstrate the company’s intent to turn a corner.” He also flagged up the possibility that Ofwat may also “ask the same of others in the industry too.”

In response, a statement issued by Thames Water said:

“The Board of Thames Water and our investors recognise the fundamental importance of delivering value and service to our 15 million customers, while continuing to invest in our network. We also recognise the need to conduct all our activities in an open and transparent way and maintain an active dialogue with our stakeholders. We are fully aware of Ofwat's concerns and have been working hard to address them. We appreciate Jonson Cox's constructive comments and intend to respond to them positively.”