Companies plan to invest £96 billion in the five years to 2030 for a series of projects, and will seek permission from regulator Ofwat to increase household bills. The plans include ten new reservoirs - there hasn’t been a new development in Britain since 1991. The utilities want to triple investment in reducing sewage spills, and cut leakage by more than a quarter by 2030, according to a statement by the industry association WaterUK.
The investment program would almost double current levels and would be the largest ever, WaterUK said. The industry has been embroiled in a crisis this year as mounting calls from the public and politicians to clean up UK waterways coincided with soaring debts in some of the biggest suppliers, including Thames Water Plc and Southern Water Ltd.
Raising bills won’t sit easily with consumers grappling with a cost-of-living crisis and frustrated with decades of underinvestment. But seeking equity funding is also difficult. While Thames investors agreed to put in £750 million in July to help stave off a temporary takeover by the government, more money is needed.
The average annual bill will rise to £575 in the financial year 2029/2030 from £425 for England, according to a spokesman for WaterUK. Water companies will double the number of homes that are eligible to receive financial support with their bills, according to the statement.