Debt-laden utility urged to show greater transparency as it faces investigation by industry regulator Ofwat

Thames Water has been urged to show greater transparency over its finances and was accused of “financial chicanery” after it emerged its board had approved a £150m dividend hours before its shareholders U-turned on providing emergency funding.

The Guardian revealed last week that the board of the struggling water supplier agreed to the payout at a meeting on 27 March.

Exclusive: Ofwat to investigate circumstances around payment of dividend to intermediate parent company

The board of Thames Water agreed to pay a £150m dividend hours before its shareholders U-turned on plans to pump emergency funding into the struggling water supplier, the Guardian can reveal.

The water industry regulator was examining the decision by the debt-laden company’s board to sign off the payout at a meeting on 27 March, sources said.