UK Water Tariffs 2026
Summary Companies
Five of the 13 corporations can hike customer bills through 2030
Extra funding will assist support housebuilding, data centre development
United Utilities obtains largest approval at £995 million
Southern Water obtains greatest permitted bill hikes
Aug 13 (Reuters) – Five British water providers will be permitted to hike customer prices after regulator Ofwat on Thursday provisionally approved up to £3.4 billion ($4.59 billion) of additional spending on infrastructure and environmental initiatives.
The plan would assist utilities to remove so-called forever chemicals and enhance drinking water quality, Ofwat said in a statement, and would boost housebuilding and data centre growth.
Britain’s water business has come under increasing scrutiny and faces an overhaul to solve environmental violations, skyrocketing debt levels, huge dividend distributions and rising customer bills.
“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,” Environment Secretary Angela Eagle said.
SOUTHERN WATER CUSTOMERS TO SEE THE BIGGEST RISE IN BILLS
Five of the 13 providers which have got the permits have been allowed to hike customer prices between 2027 and 2030, including Thames Water, Severn Trent (SVT.L), opens new tab, Southern Water, and Wessex Water.
Southern Water, with over 4 million clients across Britain, will face the greatest bill increase. They will rise by £43 for 2027-28 and £37 for 2029-2030.
“The additional funding reflects unavoidable increased costs and is needed if we’re to meet strict obligations to protect the environment and secure the long-term water supplies the population needs,” a representative for Southern Water said.
Thames Water, Britain’s largest utility, which is fighting to avert insolvency will be permitted to increase bills by £3 in 2027-28 and £5 in 2029-2030.
A spokesman for Thames Water said in a statement: “This funding will allow us to continue to develop important water security projects that will keep the taps flowing for millions of customers across London and the South East.
“EXPENDITURE MAY BE RECOUPED.
Ofwat’s Executive Director for Delivery Helen Campbell said: “We will monitor performance to ensure companies are delivering the expected improvements for customers and the environment. “If they don’t, we can claw back expenditure,”
Ofwat said £477m of the extra funds will go to meet increased demand from housebuilding and data center growth.
United Utilities (UU.L), opens new tab, which aims to put money into water infrastructure for data centers in east Manchester, was given the biggest approval of £995m, compared to the £1.11bn it asked for.
Ofwat will make its decision in December.
($1 = 0.7410 pounds)