THAMES WATER UTILITIES LIMITED
Company number: 02366661
Reporting period:
1 April 2025 to 30 September 2025
Report filed on:
23 October 2025
Approved by:
Steven Buck
Contracts and payments
Do any of this business's construction contracts with its suppliers include retention clauses? Yes
Payment statistics
Average time taken to pay invoices: 63 days
Total value paid:
- within 30 days: £908,610,642 (47%)
- in 31 to 60 days: £708,532,075 (37%)
- in 61 days or more: £311,596,824 (16%)
Invoices paid:
- within 30 days: 25%
- in 31 to 60 days: 33%
- in 61 days or more: 42%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £462,068,071
- payments due in the reporting period which have not been paid within the agreed period: 14%
- not made in the reporting period due to a dispute: 0%
Payment terms
Shortest standard payment periods
1 days
Longest standard payment period
91 days
Standard payment terms
Unless otherwise agreed, our standard payment terms are 60 end of month. This means payment is due at the last day of the second month following receipt of a correctly presented compliant invoice.
e.g. valid invoice received on 1st July would be due for payment on 30th September (91 days),
valid invoice received on 31st July would be due for payment on 30th September (61 days)
Were there any changes to the standard payment terms in the reporting period?
No
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
91 days
Where we enter into a competitive tender process, payment terms forms part of the negotiation that would be applied to the contract.
Full purchase order terms and conditions can be found within our website - https://www.thameswater.co.uk/about-us/our-suppliers
Any other information about payment terms
We operate a weekly BACS and cheque run which includes invoices due up until the Sunday of that week.
Of the 14% of invoices due but not paid within agreed terms referred to in the Payment Statistics section above, 64% are overdue by 1-5 days. This is attributed to our weekly payment timetable. The remaining invoices not paid within the agreed terms are for invoices that are being queried or are in dispute.
Retention clauses
How does this business use retention clauses?
Retention clauses are used in specific circumstances:
For this submission period, only a select minority of construction contracts have retention clauses, these are focused around some of our capital projects.
We currently have 2 retention options used in these contracts:
1. An Initial payment of 45 days after invoice with a 5% retention withheld.
2. An Initial payment of 45 days after invoice with 3% retention withheld.
Does this business only use retention clauses in construction contracts above a specific contract sum?
No
Does this business use a standard percentage rate in retention clauses?
No
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
No
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Under the terms of the contract, the project manager must approve all release of retention. A formal request is made to accounts payable on the TOC/FC
Is the money released in stages?
Yes:
For retention held, the release schedule is as follows:
-50% released at take-over certificate (TOC)
-50% released at final certificate (FC)
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
0%
Amount retained stated as a percentage of the total construction payments made by this business
2%
Dispute resolution process
There are two different types of dispute:
1. Non-compliant:
Invoices should be presented promptly to the address indicated on the purchase order and must contain a valid purchase order number. If invoices are non-compliant, they will be returned unprocessed, negatively impacting the payment date. Full details of what is considered a compliant invoice can be found within our website https://www.thameswater.co.uk/about-us/our-suppliers
We will endeavour to resolve these in a fair and timely manner. In the event of specific issue, the supplier should contact the individual who is the main point of contact as identified on the purchase order. Payment will not be made until the issue is resolved.
2. Formal disputes:
Where a solicitor has been formally instructed by Thames. Not where a pre-legal notice or final demand has been received.
Queries regarding the status of an invoice can be directed to the Accounts Payable Team via the following email address:invoiceresolution@thameswater.co.uk
Other payment information
Has this business signed up to a code of conduct or standards on payment practices? If so, which?
For example, signatories to The Fair Payment Code must commit to paying 95% of their invoices within 60 days.
No, this business has not signed up to a code of conduct or standards on payment practices.
Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
No
Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
No
Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No