Water bills set to increase for millions of households to help suppliers repair leaking pipes

Water bills set to increase for millions of households to help suppliers repair leaking pipes Ofwat has provisionally ruled that five of 13 suppliers can increase charges for customers to increase investment by £3.4bn by 2030 - Bookmark - CommentsGo to comments Troubled Thames Water is among five water companies that have received provisional approval from the industry regulator to raise household bills further for millions of households under plans allowing suppliers an additional £3.4bn in spending. In its draft determination, Ofwat stated that five out of 13 providers across England and Wales will be permitted to increase tariffs. The extra funding, to be deployed by 2030, is intended to modernise infrastructure to cope with new housing developments and data centres, as well as target forever chemicals to safeguard drinking water supplies. Financially burdened Thames Water is among the firms provisionally cleared to raise prices between 2027 and 2030, alongside Severn Trent Water, Southern Water, Wessex Water and South East Water. The move follows a three-month review by Ofwat after the 13 companies initially requested £4.3bn in spending. A consultation on the proposals runs until 24 September, ahead of a final decision expected in December. 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.” Environment Secretary Angela Eagle said: “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. “We have already ringfenced money earmarked for new infrastructure so it can only be spent on fixing the problems, and will go further by fundamentally reforming the water sector so that it works for the public; keeping bills as low as they can be, and delivering higher standards, better performance and cleaner waterways.” The news comes as Thames Water faces fresh scrutiny after revelations that it paid £1m to a chief financial officer appointed a year ago. The beleaguered firm is struggling under almost £20bn in debt, with cash running out to see the firm through beyond the end of this year and widespread concern about which direction is best for the future of the business. The company hired Steve Buck in April of 2025 as CFO, who previously worked at water utility companies Pennon Group and Anglian Water. The £1m fee paid to Mr Buck was a delayed signing-on fee, as first reported by Sky News. Among the other 14 executives to have seen retention payments agreed, two are with workers no longer at the firm and others are for smaller amounts than originally agreed or on more favourable terms. The Independent understands the water firm took legal council prior to payments being agreed and made, in line with fulfilling its current financial obligations, while the Environment, Food and Rural Affairs Committee (Efra) were informed last week about the payment to Mr Buck. Mr Buck’s joining fee was agreed to be deferred when he joined, but his contractual rights ultimately dictated he was to be paid the full sum. Thames Water also paid chief executive Chris Weston over £1m last year, as shown in their own financial records released last month. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments