Ofwat allows five water firms to hike bills
Analysis based on 33 articles · First reported Aug 13, 2026 · Last updated Aug 13, 2026
The draft decision allows water utilities to raise bills, which could improve their revenue outlook but also heightens political and regulatory scrutiny. Shares of United Utilities, Pennon, and Severn Trent fell slightly on the news, reflecting investor concerns about increased regulatory pressure and potential reputational damage.
United Kingdom — Ofwat, the water industry regulator for England and Wales, issued a draft determination allowing five of thirteen water suppliers to increase customer bills between 2027 and 2030 to fund an additional £3.4 billion in investment. The approved amount is below the £4.3 billion originally requested by the companies. The five firms are Thames Water, Severn Trent — Severn Trent, Southern Water, Wessex Water, and South East Water. The extra spending is intended to upgrade networks to support new housing and data centres, and to tackle 'forever chemicals' (PFAS) in drinking water. This comes on top of previously approved bill increases of 36% between 2025 and 2030, with an additional 5.4% average rise from April 2026. The decision has drawn criticism from Prime Minister Andy Burnham, who said customers 'cannot be treated as a blank cheque', and from the United Kingdom — Consumer Council for Water, which questioned whether every pound is necessary. Environment Secretary Angela Eagle called regulation 'toothless' and pledged fundamental reform. Thames Water, which is struggling under over £20 billion of debt, is among the firms allowed to raise bills. United Kingdom — Ofwat will consult until September 24, with a final decision due in December.
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