Ofwat has provisionally allowed 13 water companies in England and Wales to raise an additional £3.4bn through customer bills, citing pressures on infrastructure, environmental standards and future demand. The decision matters because it could add to already agreed bill increases, while intensifying concerns over whether customers should fund upgrades after years of leakage and pollution problems.

The funding would support service maintenance, new housing and data centres, wastewater capacity and earlier work to tackle PFAS “forever chemicals”. Customers of Severn Trent, Southern, Thames, Wessex and South East Water could pay £1 to £43 more in 2027/28 and 2029/30; Ofwat rejected some requests from a £4.3bn total and will consult before its final decision in December.