Thames Water is facing a fine of more than �12 million from Ofwat, following a 2006 probe by the water industry watchdog into the utility’s reporting of performance on customer service.

Ofwat said it was fining Thames Water �11.1 million for failing to provide ‘robust information’, while the company faces a further �1.4 million levy for poor processes and systems that meant users received poor service and missed payments they were entitled to.

Not that Thames Water is taking the charges lying down. It has pledged to challenge the fine, arguing that paying it will mean diverting money that could be used for improving services to customers, further penalising them. ‘What particularly concerns us,’ said chief executive David Owens, ‘is the only benefit will be to the Treasury.’

In the other camp, Ofwat boss Regina Finn said, ‘Water is a monopoly business and, until we see a competitive market developing, Ofwat must protect customers by regulating its prices and quality of service. To do this, we need complete, accurate and reliable information. Misreporting of information damages our ability to regulate the industry and therefore to protect customers.’

Meanwhile, the unloved-to-date shares in a company with a potentially lucrative connection to Thames Water, Qonnectis, have crept up a shade to 0.85p, valuing the AIM micro-cap at nearly �1.9 million. The rise follows a bullish update on its sales progression. The company recently launched a new product called Leakfrog, developed in partnership with Thames Water and with the ability to monitor domestic water leakage. Shipping of final production Leakfrog units to Thames Water began in June and subsequent field trials have apparently proven highly successful. Watch this space.