“USS Stands Strong: Navigating Thames Water’s Funding Storm with Confidence and Commitment”

Thames Water: An Update on Our Investment Overview of , a prominent water utility company in England and Wales, has been in the spotlight due to recent media coverage regarding shareholder funding and investment challenges. As a shareholder in Thames Water's ultimate holding company, Kemble, the Universities Superannuation Scheme (USS) has provided reassurance that the funding situation will not significantly impact its members' pensions. Despite facing regulatory challenges, shareholders have committed to investing further in Thames Water to address the pressing need for substantial investment in the company's infrastructure. USS's Investment Position USS, known for its globally diversified investment approach, has emphasized that the value attributed to Thames Water in March 2023 is reflected in its latest actuarial valuation. The valuation reported a substantial £7.4 billion surplus in the defined benefit part of the scheme, showcasing the resilience of USS's funding position despite the challenges faced by individual investments. Shareholder Commitments and Regulatory Challenges Thames Water's shareholders have been actively engaging with the regulator Ofwat to navigate the complexities of the regulatory landscape and ensure sustainable investment in the company. While commitments have been made to inject £750 million in new equity funding across the current regulatory period (AMP7), challenges arising from regulatory feedback on the PR24 plan have hindered the timely provision of the first tranche of £500 million. Future Plans and has outlined a comprehensive three-year turnaround plan approved by its Board, focusing on performance improvements and engaging with Ofwat for feedback on its business plan as part of the PR24 process. Despite setbacks in securing anticipated funding, the company remains dedicated to pursuing options to meet its equity investment requirements and deliver essential services to customers, communities, and the environment. Commitment to Infrastructure Upgrades and Sustainability Looking ahead, Thames Water has submitted its business plan for 2025-30 to Ofwat, highlighting a £400 million investment in upgrading water infrastructure in London. The company's initiatives extend beyond infrastructure upgrades to include cracking down on illegal water connections, future-proofing water supply in various regions, and promoting sustainability through innovative projects like utilizing sewage sludge for heating homes and supporting refugee integration into the labor market. conclusion, Thames Water's ongoing investment challenges and commitment to sustainable growth underscore the importance of strategic partnerships with regulators, shareholders, and stakeholders to ensure the long-term viability of essential water services. Despite hurdles along the way, Thames Water remains steadfast in its mission to enhance water supply, reduce its carbon footprint, and deliver value to its customers and communities. Through collaborative efforts and a focus on innovation, Thames Water continues to navigate the evolving landscape of the water utility sector with resilience and determination.