Five water companies have been given provisional approval to raise charges
Millions of Londoners will face rising water bills next year after five companies received permission to increase prices. The five firms – serving customers across five different regions in the Midlands and southern England – have received provisional approval from regulators to hike their customers’ bills over the coming years ‘to improve infrastructure for safe and reliable supplies’, according to Ofwat.
Water providers Severn Trent, Southern, South East, Thames, and Wessex will be permitted to raise charges from 2027 to 2030 as part of a £3.4 billion investment programme to enable the construction of additional housing and data centres.
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.”
She added: “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.”
Companies have already been permitted to increase water bills by 36 per cent from 2025 to 2030, Sky News reports, meaning confirmation of further rises is already generating controversy.
Prime Minister Andy Burnham criticised the proposals, saying: “Customers cannot be treated as a blank cheque. Where water companies seek to pass unnecessary costs on to households, they will be challenged.”
Ofwat has announced the permitted price rises for each water company. The most substantial hike will affect the 4 million households served by Southern Water, who can increase charges by £43 in 2027/28.
While Southern Water does not serve London postcodes, it will affect some customers who live just outside London in Kent.
Meanwhile, Wessex can increase charges by £4, and both Thames Water and Severn Trent are permitted to add £3 to bills, reports the Express. South East Water can raise their charges by £1 in 2029/30, Ofwat confirmed.
Following the provisional approval of these bill increases, a three-month public consultation has opened to examine the proposals. A final determination will be announced in December.
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