How much could water and sewerage bills increase by 2030?

In October 2023, all water companies in England and Wales submitted their five-year business plans to the regulator Ofwat. These set out the improvements and investment water companies want to make in services from 2025 to 2030. The companies stated how much they wanted to charge their customers to fund these plans through their water and sewerage bills.

Ofwat has been examining these business plans over the past few months before announcing its draft determinations on 11 July 2024.

What are Ofwat’s draft determinations

Every water company in England and Wales receives a draft determination from Ofwat. These set out what Ofwat expects each company to deliver for its customers and the environment over the next five years. It also places limits on how much each company can increase its bills to fund the package. 

Draft determinations are not the final ruling from the regulator. Ofwat will consult on its proposals and consider these responses before making its final determinations in December 2024. 

How much will bills increase based on the draft determinations?

The first table below shows how much the average bill for the water and sewerage companies in England and Wales could change. These companies provide both a clean water supply and take away wastewater for treatment. Most customers receive a single combined bill for these services.

The second table shows how much the average bill could change for the water only companies. These companies only provide a clean water supply to their customers with the wastewater service being provided by one of the water and sewerage companies. Customers may receive a separate bill for each service.

The tables show what the average household bill is for each company in the current year (2024-25) and how much this will increase to by 2029-30, based on the draft determinations.  

However, what you pay could look very different to the average bill for your water company. Bills vary considerably from household to household depending on factors like whether you have a water meter, how much water you use and the type of property you live in.  

It’s also important to remember the average bill increases shown below do not include inflation, which water companies can add to customers’ bills each year. It is difficult to predict what the rate of inflation will be over the next five years but current forecasts suggest it could be around 2 per cent. 

Companies can also earn financial rewards – or face penalties – based on performance targets agreed with the regulator. This also has an impact on people’s bills.

Water and sewerage companies

The water and sewerage companies table shows the change in average combined bill. These companies provide both water and sewerage services to customers in their supply region and people are billed for these services.

Water only companies

The water only companies table shows the changes to the average water bill. These companies only supply clean tap water to customers in their region. The treatment of wastewater is provided by one of the water and sewerage companies listed in the water and sewerage table and customers are charged for this service.