UK government to make unprecedented intervention in setting of water bills

Environment secretary Angela Eagle says the government will intervene in the next water price review in England and Wales, directing companies to prioritise affordable bills, value for money and investment that reduces leaks and sewage overflows. The move breaks with the established process, which has been run by regulator Ofwat, and signals a shift towards stronger government direction of the sector.

The review is expected to conclude in 2029, and the government says it will also set out a 10-year plan after next week’s budget. Eagle’s letter urges investment in cost-saving technology and gives local communities and leaders a greater role in decisions, but does not demand bill cuts. The previous review approved a £104bn modernisation programme, alongside controversial bill rises; meanwhile, Thames Water has sought a further £2.4bn from creditors as it faces a cash shortage.