Thames Water among five water companies allowed to hike bills to boost spending

Thames Water is among five water firms given the provisional go-ahead by the industry watchdog to hike bills further as part of plans allowing suppliers to spend an extra £3.4 billion.

The debt-laden company is one of the suppliers who have been provisionally been given permission by Ofwat to increase customer bills between 2027 and 2030, alongside Severn Trent Water, Southern Water, Wessex Water and South East Water.

The proposals would add between £1 and £42 to the average customer bill.

Reacting to the prime minister warned water companies to not treat customers like "a blank cheque".

Andy Burnham said: “I understand why people are angry – I am too.

“The truth is customers have been asked to pay more for years, yet serious pollution incidents are at record levels and the pipes are still leaking.

“None of which is the billpayer’s fault, who should not be treated as a bottomless source of funding for other people’s failures.”

He added: “Customers cannot be treated as a blank cheque. Where water companies seek to pass unnecessary costs on to households, they will be challenged.

“Our water industry has clearly not been working for people for far too long. That’s why this Government will be looking at how we can give the public more control and help keep bills as low as possible.”

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Ofwat said the increased charges would be used to help upgrade networks to cope with new housing and data centres and tackle forever chemicals to ensure drinking water is safe and reliable.

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.”

The regulator will now consult on the proposals, with a final verdict due in December.

Environment Secretary Angela Eagle branded regulation of the water sector “toothless” and pledged to “fundamentally reform” it.

Ofwat will now consult on the proposals, with a final verdict due in December.

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