Key events
Introduction: Ofwat to investigate Thames Water over environmental clean-up delays
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The UK regulator Ofwat has opened an enforcement case into Thames Water to investigate whether its delayed delivery of environmental clean-ups means that the company has breached its obligations.
Thames Water committed to deliver 812 schemes as part of the water industry national environmental programme between 2020 and 2025.
However, the company alerted Ofwat and the Environment Agency that it will be unlikely to deliver more than 100 of these projects on time, by 31 March.
Lynn Parker, senior director for enforcement at Ofwat, said:
Customers have paid for Thames Water to carry out these essential environmental schemes. We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations.
If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right.
The Guardian reported in late December that Thames Water intentionally diverted millions of pounds pledged for environmental clean-ups towards other costs including bonuses and dividends.
Later today, the chancellor Rachel Reeves is due to meet with the bosses of Britain’s biggest banks, including the chief executives of Barclays, HSBC, Nationwide, Lloyds, NatWest and Santander, to discuss the government’s growth ambitions.
And at lunchtime (UK time), we’ll get the latest US inflation figures, which are expected to show price pressures were steady last month at an annual rate of 2.9%, while the core rate (which strips out volatile food and energy costs) is forecast to have dipped to 3.1% from 3.2%.
Economists at Deutsche Bank led by Jim Reid said:
Today’s report is getting a decent amount of attention, in part because last January’s report saw a strong upside surprise, so the fear is we could get another new year uptick that upsets market expectations for the Fed to still cut [interest rates this year.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said:
A set of softer-than-expected inflation numbers could help sooth inflation worries and encourage a deeper retreat in the US dollar and a further advance across the major peers. While a stronger-than-expected set of inflation figures could fuel worries, back a further rise in US [bond] yields and the dollar, and weigh on risk appetite.
The Agenda
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10am GMT: European Central Bank member Frank Elderson speech
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1.30pm GMT: US Consumer price index for January (forecast: 2.9%; previous: 2.9%)
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3pm GMT: US Federal Reserve chair Jerome Powell gives testimony
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3pm GMT: Bank of England policymaker Megan Greene speaks at IoD
Article by:Source: Julia Kollewe
