Water companies to say bill cap creates 'material risk' for them

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Industry lobby group Water UK to say regulator plans 'hamper' its ability to improve its services.

Water companies will say later today that a planned cap on bill increases would create a "material risk" they would fail to raise the investment needed to stop sewage spills.However, industry lobby group Water UK will say that this cap would "hamper" company's ability to improve services.

When Ofwat first proposed the limit as part of its draft decision on the water companies' 2025 to 2030 business plans, Water UK said the regulator had "got this wrong". It argued water companies had to be profitable to attract the investment needed to improve a system overwhelmed by the increased rainfall caused by climate change.

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