UK water consumers slapped with 21% price hike by Ofwat

(Sharecast News) - Britain's long-suffering water customers will see bills rise by 21% over the next five years amid a continuing sewage pollution crisis, water regulator Ofwat said on Thursday, although the increase was still much lower than that demanded by utility firms. The draft determination from the regulator for 2025-30 means bills will go up an average £94 with companies told to spend £88bn on upgrading infrastructure to clean up rivers. It is around a third lower than companies had asked for.

"This is mainly because we have challenged companies' view of what they need to spend, and because some companies based their plans on an investor return above the level we think is fair," Ofwat said in a statement.

Thames Water, labouring under £16bn in debts after paying out billions in dividends to investors, was permitted to hit its customers with a £99 increase, having tried to slap them with a £191 rise, despite years of leaking pipes and sewage spills into rivers.

A final decision is scheduled for December.

Reporting by Frank Prenesti for Sharecast.com