Thames Water, which is the UK’s largest water company, said this week that it would be unable to survive without increasing the average monthly household bill by £18.99 by the end of 2030.
This is the equivalent of a 59% bill hike and would see the average annual water bill for its customers rise from £443 currently to £638.
Thames Water is lobbying for the bill increases to help address issues such as sewage spills.
It follows the regulator Ofwat’s July proposal of an average £19 per year ceiling on water bill rises, which is significantly less than companies such as Thames Water have requested.
A final decision from Ofwat is expected at the end of this year.
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Rises in water bills
Ofwat’s figure is an average across all water companies and, therefore, different customers will see different prices.
Ultimately, the price that customers end up paying will depend on a variety of factors, including where you live, if you have a water meter and how much water you use.
In a statement this week, Thames Water said: “Our business plan will see customer bills increase to fund much-needed investment.
“By the end of 2030, the average monthly customer bill will have increased by £18.99 from what they pay today in real terms.
“We are committed to doing our best to ensure that customers do not pay more than they need to for vital investment by becoming a more agile, efficient, and responsive company and we will ensure we support our customers who will struggle to pay.”
‘A multibillion-pound gap’
The company said it had “listened carefully” to Ofwat’s feedback and had “stretched” itself to deliver more where it can.
However, it went on to say that Ofwat’s plans meant it was unable to attract money from investors, and so it needed to turn to customers for funding instead.
It explained: “The scale of the cuts Ofwat proposes in its draft determination, a 25% decrease to our proposed expenditure, is not tenable and renders our plan un-investible.
“This would leave us with a multibillion-pound gap between what we are allowed to charge our customers and what is needed to deliver against the ambitions that customers and stakeholders have set for us.”
It said investments were needed to maintain safe, high-quality drinking water, ensure security of water supplies and deliver further environmental improvements.
Ofwat has set out a record £88bn upgrade to deliver cleaner rivers and seas, and better services for customers.
David Black, chief executive of Ofwat, said: “Customers want to see radical change in the way water companies care for the environment.
“Our draft decisions on company plans approve a tripling of investment to make sustained improvement to customer service and the environment at a fair price for customers.”
