Ofwat approves £3.4bn plan allowing five water firms to raise bills

Millions of households across England and Wales face higher water bills after the industry regulator provisionally approved a £3.4 billion spending plan that will allow five water companies to increase charges. The decision, announced by Ofwat on August 13, 2026, follows a three-month review and is part of a broader effort to fund infrastructure upgrades, support new housing and data centre development, and improve drinking water quality by removing so-called forever chemicals.

Ofwat stated that five of the 13 water suppliers it reviewed have been given the green light to raise customer bills between 2027 and 2030 to help fund the additional investment. The companies are Thames Water, Severn Trent Water, Southern Water, Wessex Water, and South East Water. The regulator said it had rejected £752 million of the original £4.3 billion in spending requests, in some cases because companies had not delivered on previously funded work.

Southern Water customers will see the largest increases, with bills set to rise by £43 in the 2027-28 period and by a further £37 by 2029-30. Thames Water, the country's largest supplier with around 16 million customers, will increase bills by £3 in 2027...