Changes to our charges
Over the past few years, we’ve done everything we can to avoid increasing our prices. Water industry regulator, Ofwat, has reviewed our business plan for 2025-2030. They've issued us with a final determination. This has been referred to the Competition and Markets Authority (CMA). The referral will not impact the price increase we've set for 2025-2026.
All water companies must follow Ofwat’s charging rules when setting their prices. We’ve used this as the basis for our wholesale charges over the upcoming year. You may notice Ofwat is providing a lower percentage of bill increases. However, they don't include inflation, and it’s averaged for all customers. This is not reflective for customers who don't receive financial support also.
Charges each water company sets is no longer specifically approved by Ofwat. They can impose penalties if a water company is not performing to the targets set. This can result in a reduction in the amount of revenue that can be recovered from customers.
When and how much our charges are changing
Our new wholesale charges start on 1 April each year and apply to everyone in our supply area. We publish and communicate to our Retailers in January to notify them of the changes.
Once a year, we review our wholesale prices. Charges may vary dependent on whether they’re unmetered or metered supply. You can receive more information on your bill from your Retailer.
The price rise next year is however expected to much lower than in this year and will be more in line with inflation.
For more information on changes to charges, visit our frequently asked questions page.
What our charges pay for
The new charges are part of our five-year business plan. The money we’re asking for will be invested in new infrastructure and improving our services.
We'll be focusing on areas customers have told us to matter the most to them.
From 2025-2030 we plan to:
- Keep safe, high-quality drinking water flowing with fewer interruptions
- Fix leaky pipes and the aging mains network to reduce wasted water
- Invest in upgrading our sewage works
- Reduce pollution incidents and storm overflows
- Ready the water network for population growth and climate change
- Continue to provide high standards of drinking water
We’ll be confirming our targets after this current price review. We always try to keep our customers updated with the investments we’re making in our network. This is publicised on our website, social media, emails, letters and in the media.
What our charges don't pay for
The increase in charges is not to improve our financial position. This is untrue and misleading. The proposed extension to our debt is an interim funding solution. It won't impact our increase in customer bills. We're working through the next steps to stabilise the business further. This is so we can deliver an investable and financeable business plan.
Money we raise won’t be used to pay off our debt or external dividends. We’re also following Ofwat's guidelines on bonuses. We won’t use customer charges for executive bonuses unless our performance meets expectations.
Help paying your bill
If you need help paying your bill, or have questions about it, please contact your retailer.