Ofwat Provisionally Approves £3.4bn in Extra Water Bill Hikes
Water regulator Ofwat has provisionally approved an extra £3.4bn in bill increases across 13 water companies in England and Wales. A final decision on the proposed funding is scheduled for December following a public consultation.
Water companies operating across England and Wales have been given provisional approval by the industry regulator, Ofwat, to increase customer bills by an additional £3.4bn. The regulatory decision, announced on 13 August 2026, responds to proposals submitted by the sector, which originally sought a total of £4.3bn in extra funding requests.
The provisional approval directly impacts 13 water companies across England and Wales, with customers of five specific providers facing additional bill rises over the next two years. Among those affected, Southern Water customers face an extra charge of £43 next year, while South East Water customers will see an increase of just £1 more in 2029.
The wider group of 13 companies involved in the provisional determinations includes Severn Trent Water, Southern Water, Thames Water, Wessex Water, South East Water, Anglian Water, Dwr Cymru Welsh Water, Hafren Dyfrdwy, Northumbrian Water, South West Water, United Utilities, Yorkshire Water, and SES Water.
The provisional decision has sparked widespread criticism from political figures and environmental campaigners. Greater Manchester Mayor Andy Burnham criticized the move, describing the increases as taking real money out of family budgets at a time when they are struggling with the cost of living, while warning that where water companies seek to pass unnecessary costs onto households, they will be challenged.
Environmental and consumer groups also voiced strong opposition to the regulatory announcement. Amy Fairman of Friends of the Earth condemned the decision, stating that Ofwat waving through yet more water bill hikes is an insult and demanding no more blank cheques for failure.
Echoing these concerns, Kierra Box of River Action pointed to the state of natural waterways, stating that our rivers and seas are chock full of filthy sewage and chemicals, which have seen next to no improvement despite recent bill hikes. Box added that now ordinary people are being asked to foot the bill once again to pay for decades of water company inaction on upgrading our crumbling water infrastructure, calling the situation daylight robbery.
In response to the mounting pressure and public scrutiny, Helen Campbell of Ofwat emphasized that the regulator will track performance to ensure companies are delivering the expected improvements for customers and the environment. Following this provisional announcement, a public consultation will precede a final decision on the bill increases, which is due in December.
