Our charges

Each year our charges are subject to change. On average our charges will go up by 11.6% on 1 April 2023. This includes inflation, which is affected by energy prices, and adjustments for our past performance.

We follow guidance from our regulator Ofwat and consult CCW, the voice for water consumers, on our charges. In common with other water companies, we use CPIH: the Consumer Prices Index including housing costs, when calculating inflation.

How our charges are changing for 2023/24

Water and wastewater customers	Water only service	Wastewater only service
11.6% average price rise	14.9% average price rise	7.6% average price rise

Bill increase

The overall bill increase is mainly due to inflation, including rising energy prices.
Part of the bill increase also depends on our company performance. In 2021/22 we achieved most of our water supply targets, such as those relating to leaks and supply interruptions.

However, our regulator Ofwat applied a penalty following our performance on wastewater – for example, relating to flooding – and on customer service. This has resulted in wastewater charges being lower than they otherwise would have been.

Minimising the price increase

We’ve worked hard to limit the increase in prices where we can, including generating our own power as part of the sewage treatment process. We create more than 20% of the power we need at our own sites, which helps to reduce bills because we have to buy less electricity from the grid.

Showing the increase on your bill

We aim to make our bills as simple to understand as possible for all our customers. We’ve therefore not included every breakdown cost on your bill so you can focus on the important information.

Breakdown of every £1 we spend

46p – infrastructure

This includes 3p for the Thames Tideway Tunnel, which will divert millions of tonnes of sewage from the River Thames when it goes into operation.

19p – essential services

We deliver and recycle billions of litres of water every day.

15p – our team

From engineers to scientists, we invest in over 7,000 people who help keep your water flowing.

8p – lenders

To invest in our network, we borrow money at efficient rates while keeping your bills as low as we can.

7p – powering our sites

We currently generate more than 20% of our own energy to help protect the environment

5p – the government

In 2021/2022 we paid over £88 million in business rates and for employer’s national insurance contributions.

Visual breakdown of how a pound is spent within Thames Water

How we're making a difference

Every time you pay your bill, the money helps us to:

As the UK’s biggest water company, it’s our duty to protect our major water source, the River Thames, along with the environment and our customers.

Our large-scale projects, such as the Thames Tideway Tunnel and the Guildford Sewage Treatment Works relocation, are transforming our water and sewer networks to protect the environment and better serve our customers.

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