Frequently asked charges questions

As a wholesaler, we sell our water and wastewater services to Retailers. They will then develop charges for their business customers, covering our wholesale charges and their own retailer costs.

We have no part in the charges Retailers develop for their customers, and charge all Retailers the same prices, as set out in our Wholesale tariff document. 

Our water industry regulator, Ofwat, finished their industry-wide price review in 2024. They reviewed our business plan for 2025 to 2030 and issued a final determination. It set the level of revenue we can recover from our customers. We use this as the basis for our charges over the upcoming charging year.

All water companies have to follow Ofwat’s charging rules when setting their prices. Ofwat no longer specifically approves the charges each water company sets.

No. Our price rises published at the beginning of each financial year will not change. Any changes will be reflected in future year charges.

Any changes to what we charge Retailers will take effect from 1 April each year.

This will then be incorporated as needed in the bills that are sent to you by your Retailer. 

For wholesale charges: this year there is 10% increase in water charges, but a 5% decrease in wastewater charges, which works out to a 4% increase for dual service customers.

However, there will also be a Retailer charge on your bills which is set by your Retailer, you will need to contact them to see how this has affected your bill. 

Fixed charges help cover the basic costs of providing your water and wastewater services, in particular the drainage - collecting and treating rainwater that runs off your home and nearby roads.

Our drainage service charges reduced by 4.9% This reflects a decrease in wastewater revenue allowances from Ofwat.

The Retailer Wholesaler Group (RWG) has published a good practice guide on tariff structures, to better standardise how wholesalers charge. We are aligning to this good practice and one of those changes involves removing the intermediate user charging band.

We will be using a phased approach to remove this tariff band and this is the first step, with intermediate users seeing an increase to their volumetric charges and a decrease to their supplementary charges. 

The new charges apply to everyone in our supply area.

Ofwat set out in their Final Determination that prices are set to increase each year up until 2030.

In 2025/26 there was a larger increase but for 2026/27 and in subsequent years price rises are likely to be much lower and more in line with inflation.

The new charges are part of our five-year business plan. It sets ambitious goals based on a record level of investment. You can view our five-year plan in progress.

Over the past few years, we’ve done everything we can to avoid increasing our prices. We'll invest the money to improve in the areas you've told us matter most to you.

• 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

The changes we're making are part of our five-year plan. This sets out our ambitious goals to invest in and improve services for you.

We also have a range of projects that are helping to transform our network and protect the planet.

See our changes to our charges page for more information.

We’ve set goals to reduce pollution in our five-year plan. The plan is still under review, but we’re currently aiming for a 30% drop in pollution incidents by 2030.

But no matter what happens, reducing pollution is a huge priority for us moving forward. We know we must do more to look after our rivers and streams. We’re determined to reduce pollution, storm overflows and blockages. You can view our five-year plan in progress.

We haven't paid an external dividend since 2017, and we've committed to pay no external dividends before 2030. We're maximising investment to update our critical assets.

Ofwat has ruled executive bonuses cannot be paid from money collected from customers. This is unless our performance meets expectations.

The £3 billion liquidity extension will not impact bills. 

The debt extension is an interim funding solution while we stabilise the business. Our aim is to deliver an investable and financeable business plan. This liquidity extension allows us to continue investing for the future.

It's important to us to keep you updated with the investments we’re making. We do this through our website, direct customer communications, and to the media. The water sector is also highly regulated. Ofwat and the Environment Agency monitor the activities of all water companies in the UK.

If water companies not meet their targets set by Ofwat, they face penalties. This can reduce the revenue that the water company can recover through bills.

The Thames Water Board has made the decision to refer Thames Water’s Final Determination to the CMA. This is to protect your interests as well as the best interests of the environment and our business operations.

The decision was not made lightly. We need to enter the next regulatory period on a stronger footing. This will help us support growth, improve your service, protect the environment, and adapt to climate change.

Thames Water have agreed with Ofwat to a further deferral of the Reference to CMA, which will provide an opportunity for discussions to continue in the coming weeks. 
 
This deferral is not a withdrawal of the request for the Reference and Thames Water remains of the view that the Final Determination does not serve the interests of Thames Water’s customers, communities and the environment.