Water bills to rise by £94 over next five years in England and Wales

Water bills in England and Wales will rise by an average of £94 over the next five years, in plans set out by the regulator.

The sum is a third less than the increases requested by companies, and amounts to a rise in bills of about £19 each year over the period.

It came in a review by Ofwat, which examined the spending plans of English and Welsh water companies for 2025-30. The plans were submitted last October, and Thursday’s report represents Ofwat’s draft view, with a final decision scheduled for December.

Customers of struggling Thames Water will face a 22% increase in their bills over the next five years after the industry regulator limited a larger hike proposed by the company.

Ofwat said Thames would be allowed to increase bills by £99 to £535, £92 less than the company had proposed. Thames had asked the regulator to raise bills by 44% over the next five years.

Water companies have been criticised for asking customers to pay for a £96bn investment programme to stop raw sewage dumping, build new reservoirs and reduce leaks.

Campaigners for clean water argue that customers should not be paying for infrastructure investment that should have already been carried out to comply with companies’ operational permits.

Thames has faced sustained criticism over leaky pipes, sewage dumping and extracted dividends.