Ofwat Approves £3.4 Billion Extra Water Spending, Bill Hikes for Five Firms
Ofwat provisionally allows five UK water firms to raise bills, approving £3.4bn extra spending for infrastructure and environmental measures.
Britain's water regulator, Ofwat, has provisionally approved £3.4 billion in additional spending for five water companies, a move that will permit them to raise customer bills between 2027 and 2030. The package is aimed at funding infrastructure upgrades, removing 'forever chemicals,' and improving drinking water quality.
The decision also allocates £477 million to address rising demand from housebuilding and data centre development. United Utilities received the largest approval at £995 million, though this was below its £1.11 billion request. The company plans to invest in water infrastructure for data centres in east Manchester.
Southern Water, serving over 4 million customers, will see the steepest bill increases: £43 for 2027-28 and £37 for 2029-2030. Thames Water, Britain's largest utility, will be allowed to raise bills by £3 for 2027-28 and £5 for 2029-2030. A Thames Water spokesperson said the funding would support vital water security projects for London and the South East.
Ofwat's Executive Director for Delivery, Helen Campbell, warned that performance will be tracked closely. "If they don't [deliver], expenditure can be clawed back," she said.
The approvals come amid intense scrutiny of the water industry, which faces criticism over environmental breaches, debt levels, and dividend payouts. Environment Secretary Angela Eagle acknowledged public frustration, citing years of underinvestment and weak regulation. Ofwat will make its final decision in December.