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Pension fund investors on the hook for Thames Water fines

Pension funds that are shareholders in U.K. utility company Thames Water will foot the bill after the company was fined following an investigation by the Water Services Regulation Authority, a U.K. water regulator also known as Ofwat.

Thames Water agreed to pay 120 million ($160 million) back to its customers, which includes an Ofwat penalty of 65 million and 55 million incurred from not reducing leakage in its pipes, the company said in a news release.

A Thames Water spokeswoman said all of its shareholders, which include the €188.5 billion ($219.6 billion) Stichting Pensioenfonds Zorg en Welzijn, Zeist, Netherlands; C$135.5 billion ($104 billion) British Columbia Investment Management Corp., Victoria; C$95 billion Ontario Municipal Employees’ Retirement System, Toronto; 60 billion Universities Superannuation Scheme, London; and 49 billion BT Pension Scheme, London, will bear these costs.

Those pension funds have a combined 58% equity interest in a holding company, Kemble Water Holdings, through which they own Thames Water. The spokeswoman declined to provide details of how the shareholders will cover the bill.