Struggling Thames Water is among five water firms given provisional approval by Ofwat to increase customer bills, enabling suppliers to spend an extra £3.4 billion by 2030. The draft determination, announced by the industry watchdog, allows five of 13 suppliers across England and Wales to raise charges to fund upgrades for new housing, data centres, and the removal of forever chemicals to ensure safe drinking water.
Which firms are affected?
Debt-laden Thames Water, Britain's largest water supplier with around 16 million customers, is provisionally allowed to increase bills between 2027 and 2030. The other firms are Severn Trent Water, Southern Water, Wessex Water, and South East Water.
The decision is likely to stoke anger, as the water sector faces criticism over rising bills amid poor performance on sewage spills, water quality, and supply failures.
Political backlash
Prime Minister Andy Burnham criticized the draft decision, saying customers "cannot be treated as a blank cheque." He stated: "I understand why people are angry – I am too. The truth is customers have been asked to pay more for years, yet serious pollution incidents are at record levels and the pipes are still leaking. None of which is the billpayer’s fault, who should not be treated as a bottomless source of funding for other people’s failures."
Environment Secretary Angela Eagle branded water sector regulation as "toothless" and pledged to "fundamentally reform the water sector." She said: "I know that households across the country are watching every pound and I share their frustration that years of underinvestment and toothless regulation has led to this."
Next steps
Ofwat will consult on the draft decision until September 24, with a final verdict due in December. Helen Campbell, executive director for delivery at Ofwat, said: "The newly agreed funding will help unlock much-needed new housing development and boost business growth across a range of sectors, as well as improving drinking water quality and the removal of PFAS and forever chemicals. We will track performance to ensure companies are delivering the expected improvements for customers and the environment. If they don’t, expenditure can be clawed back."
