Thames Water has been provisionally cleared to raise customer bills as part of a £3.4bn investment programme for England and Wales’s water networks.
Ofwat said five of 13 companies could increase charges between 2027 and 2030 to fund upgrades needed to support new housing and data centres and tackle contaminants including “forever chemicals”. Debt-laden Thames Water joins Severn Trent, Southern Water, Wessex Water and South East Water.
The firms had initially sought £4.3bn in additional investment. Ofwat will consult on its draft determination until September 24, with a final decision expected in December.
The increases come as Thames Water faces mounting financial pressure and restructuring risks.
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.
“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.”
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