Oxfordshire Thames Water customers set to see bills increase

The industry watchdog has provisionally allowed Thames Water to increase charges between 2027 and 2030 to help fund an additional £3.4 billion investment.

This investment is aimed at upgrading networks to cope with new housing and data centres and tackling ‘forever chemicals’ to ensure drinking water safety and reliability.

The Consumer Council for Water (CCW) criticised the decision, highlighting the burden of rising bills amidst current cost-of-living pressures.

The CCW emphasised the need for Ofwat to justify the necessity of every pound of the extra £3.4 billion.

Ofwat has already permitted water firms to hike bills by 36 per cent between 2025 and 2030, with a 5.4 per cent average increase from April this year.

The move to allow additional bill increases comes as Thames Water faces potential collapse due to a more than £20 billion debt crisis.

Creditors are currently working on a rescue deal to prevent temporary nationalisation by the Government.

Prime Minister Andy Burnham has voiced his disapproval of Ofwat’s decision, criticising the water companies for treating customers as a ‘blank cheque.’

Mr Burnham expressed his anger, stating: “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.

Thames Water has been allowed to increase charges between 2027 and 2030 to help fund an additional £3.4 billion investment. (Image: Andrew Matthews/PA Wire)

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

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

South East Water, also permitted to raise bills for its investment programme, has faced backlash after supply interruptions left thousands without water.

Steve Hobbs, senior policy lead at the CCW, stressed the need for investment to deliver cleaner rivers, reliable water supplies, and future-proof infrastructure.

However, he warned that this ambition must be balanced against the financial struggles faced by many households.

Water UK, representing suppliers, defended the expenditure, stating it will safeguard services, support new homes and business growth, and replace ageing infrastructure.

The organisation assured that most customers will not face immediate bill impacts, and help is available for those struggling to pay.

Environment Secretary Angela Eagle criticised the water sector’s regulation as ‘toothless’ and pledged to ‘fundamentally reform’ it.

Ofwat will consult on the draft decision until September 24, with a final verdict due in December.

Helen Campbell, executive director for delivery at Ofwat, said the new funding will support housing development, business growth, and improvements in drinking water quality.

She assured that performance would be tracked to ensure companies meet expected improvements for customers and the environment.