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Water regulator Ofwat allows extra £3.4bn spending

Ofwat’s approval lets five water companies raise bills more than originally planned through the decade to fund upgrades tied to new homes and datacentres.

Reported · Written up by our desk · Industry

Millions of households in England and Wales face higher water bills after Ofwat allowed water companies to spend an additional £3.4bn beyond what was agreed.

The extra spending comes on top of a £104bn investment programme approved by the regulator, which Ofwat said would mean water bills rise by 36% over the second half of the decade.

Ofwat said 13 companies requested to spend £4.3bn more than 2024 plans due to unforeseen costs, and it approved £3.4bn. The allowance includes £1.2bn to safeguard water services and assets, and £477m to support housebuilding and datacentre development.

The regulator also said £34m would be earmarked to reduce toxic chemicals in the water system, and that five companies, Southern Water, Thames Water, Severn Trent, Wessex Water and South East Water, will be able to increase bills more than originally planned before the end of the decade, while the remainder would be added in the 2030s, according to The Guardian Business.

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