Thames Water has proposed a £19 billion spending plan for 2025-2030 that would increase London household bills by £14.55 per month, above the industry average of £13. The utility, serving 15 million customers, said the investment targets storm overflows, bathing water quality, and leak reduction.
The plan includes £4.7 billion for network and asset upgrades, described as a record. Raw sewage overflows in London's rivers exceeded 7,000 hours last year. Thames Water consulted 20,000 customers and promised an improved social tariff for struggling bill payers.
Regulator Ofwat must approve the proposals. The increase was limited by £100 million due to Thames Water's slow performance in the previous spending period. The company faces a £14 billion debt burden and rising interest costs.
Criticism has mounted over past dividend payments and executive bonuses while investment lagged. Shareholders injected £750 million in July. CEO Sarah Bentley resigned in June, leaving interim co-CEOs Cathryn Ross and Alastair Cochran, who acknowledged performance shortfalls and pledged a turnaround.
Liberal Democrat Tim Farron called the bill hike 'scandalous,' while the GMB union labelled it an 'insult,' arguing consumers should not pay for decades of underinvestment. Ofwat and the government face pressure to reject the increases.
