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UK water regulator Ofwat will allow utilities in England and Wales to raise customer bills by an average of 36 per cent by 2030, a larger increase than it earlier indicated, but still short of hikes requested by troubled companies such as Thames Water.
Water companies have been locked in negotiations with Ofwat over how far they can raise bills between 2025 and 2030. The industry has pushed for hefty increases, saying they are needed to fund investment in ailing infrastructure.
Since the industry’s privatisation in 1989, water companies have been required to reach settlements with the regulator every five years covering bill increases, the amount they can invest and the returns their investors can make.
The prolonged crisis at Thames Water has threatened to drive investors away from the industry, raising the stakes for Ofwat. Thames Water, the UK’s largest water company, has warned that an adverse ruling would jeopardise its efforts to raise new equity from investors.
This is a developing story
