Southern Water, Thames Water, Severn Trent, Wessex Water and South East Water have been provisionally permitted to increase bills<\/strong> between 2027 and 2030 to help fund the additional investment. Water companies had already been allowed to raise bills by 36% between 2025 and 2030, with an average increase of 5.4% taking effect from April this year.<\/p>\n\n\n\n Southern Water customers face the largest additional rise<\/strong>. According to This is Money, they will pay \u00a343 more next year and a further \u00a337 by 2029. Thames Water bills will rise by \u00a33 in 2027 and \u00a35 a year by 2029, with the same increases applying to Severn Trent. Wessex Water customers will pay \u00a34 more in 2027 and \u00a37 more by 2029, while South East Water will add \u00a31 in 2029.<\/p>\n\n\n\n The wider price settlement had already allowed Southern Water bills to rise by 53% by 2030 to \u00a3642. Severn Trent customers were facing a 47% increase, while customers of D\u0175r Cymru and Hafren Dyfrdwy were set for rises of 42%.<\/p>\n\n\n\n Thames Water, which supplies around 16 million customers, is also under significant financial pressure. The Standard reported that the company has more than \u00a320bn of debt and is seeking a rescue agreement with creditors as it tries to avoid temporary nationalisation.<\/p>\n\n\n\n Ofwat said \u00a31.2bn of the additional spending would be used to safeguard <\/strong>water services and assets, while \u00a3477m would support housebuilding and data-centre development. Another \u00a334m has been allocated to reducing toxic chemicals in the water <\/a>system and improving drinking water.<\/p>\n\n\n\n The regulator has linked some of the new allowances directly to infrastructure needed for planned development. According to The Guardian, United Utilities<\/strong> has been permitted to invest in new water infrastructure serving data centres in East Manchester, while spending at Newquay Wastewater Works is intended to support residents and growing tourism.<\/p>\n\n\n\n United Utilities was granted \u00a3995m of the \u00a31.11bn it requested. Severn Trent received approval for \u00a3329m of a \u00a3481m request, while South West Water was allowed \u00a3180m against a request for \u00a3239m. Ofwat rejected \u00a3752m of proposed spending, including cases where companies had not delivered work that had already received funding.<\/p>\n\n\n\n![\"\"](\"https:\/\/en.econostrum.info\/uk\/wp-content\/uploads\/sites\/6\/2026\/08\/Five-water-firms-cleared-to-raise-bills-as-millions-face-higher-costs-\u00a9-Shutterstock-1200x727.jpg\"){kind=spacer}
Extra Funding Targets Housing, Data Centres and Water Quality<\/strong><\/h2>\n\n\n\n