Ofwat is considering appointing an independent monitor to oversee Thames Water after it lost two investment-grade credit ratings.
This decision follows credit downgrades by Moody’s on 24th July and S&P on 31st July.
The proposed steps, which are now open for consultation, include appointing an independent monitor to review the company’s progress and plans.
The monitor will report back to Ofwat regularly and have access to company information.
Additionally, Thames Water will need to create and carry out a business plan aimed at improving its performance.
The company is also required to take action to raise new funds from investors and add new non-executive directors to its board.
These measures will stay in place until Thames Water regains two investment-grade credit ratings.
A consultation on these proposals is now open, with responses due by 5pm on Friday 16th August.
David Black, Chief Executive of Ofwat, said: “We are clear that Thames Water needs to remedy its licence breach, turnaround its operational performance and secure backing from investors to restore its loss of investment grade credit rating.
“We will continue to monitor progress very closely and will not hesitate to take any further action if necessary.”
The proposed fines, which are subject to consultation, include £104 million for Thames Water, £47 million for Yorkshire Water and £17 million for Northumbrian Water.