Household water bills to surge as companies reach deal with Ofwat

In the United Kingdom, water suppliers United Utilities and Pennon have both reached funding agreements with the water regulator Ofwat. This agreement will have significant financial implications for consumers, with increased costs expected over the next several years. Specifically, Pennon, the owner of South West Water, is raising £490 million from shareholders to support its financing over the next five years. As a part of this financing settlement, household water bills in the West Country will see a steep increase of 23 percent, culminating in an average bill of £610 before accounting for inflation by 2030. In the northwest of England, United Utilities has also come to terms with Ofwat on its funding settlement, resulting in a 32 percent rise in household bills. This increase will bring the average water bill for consumers in their coverage area to around £585 before inflation-linked annual increases are applied. The changes are expected to substantially impact families and individuals alike, as they budget for essential services amid rising living costs.