Thames Water is set to implement substantial increases to its water bills, raising them by £19 per month come April, representing a staggering 31% hike. This increase places Thames Water among the highest rate hikes from water companies across the UK, even with the potential for higher bills depending on property value.
The company is expected to disclose its complete new pricing structure today, January 31, 2025, on its website, prompting outrage from campaigners who have labeled the steep increases as 'daylight robbery'. Critics are particularly frustrated with what they perceive as Thames Water's prioritization of shareholder payouts over environmental accountability and infrastructure investment.
Ofwat, the water regulator overseeing price adjustments, noted back in December 2024, it had thoroughly reviewed water companies' requests for rate increases. Regrettably, Ofwat approved even higher hikes than originally sought by these companies.
Thames Water defended its decision, stating, "For us to continue to deliver billions of litres of clean water and take wastewater away from millions of homes, it’s also imperative we invest substantially in our network and infrastructure over the next five years." The company argues these price adjustments are necessary to reduce pollution incidents and prepare the water network for future population growth and climate change.
James Wallace, chairman of environmental advocacy group River Action, expressed deep frustration, asserting, "We’re being told to celebrate the ‘record investment’ of water companies, but in reality, it is the public who will pay the price for their decades of neglect." He argued water companies are diverting funds meant for infrastructure improvements to pay off significant debts, leading to polluted rivers and exorbitant bills for consumers.
Local politicians joined the chorus of disapproval. Oxfordshire’s Liberal Democrat MPs, including Layla Moran, Olly Glover, and Charlie Maynard, condemned Thames Water, stating, "It’s outrageous... Thames Water have been allowed to increase bills...while bosses were awarded £770,000 in bonuses." They emphasized their constituents should not have to shoulder the burden of Thames Water's financial mismanagement.
Following Ofwat’s announcement of substantial improvements to the water sector involving £104 billion upgrades, there remain serious concerns about Thames Water's financial strategies and accountability. Ofwat’s CEO, David Black, underscored, "Customers will rightly expect companies to show they can deliver significant change over time to justify the increases in bills." Yet, many believe these expected changes may be too slow or inadequate.
Currently, Thames Water is also pursuing £3 billion in emergency funding to help restructure its massive debt, with the decision set to be deliberated by London’s High Court next month. Critics from the campaign group Windrush Against Sewage Pollution (WASP) highlighted their belief this money would primarily go toward servicing interest on the company's enormous borrowing rather than enhancing infrastructure.
WASP stated, "Money could and should be spent on infrastructure and staff... is also lost, to a massive extent, on interest payments on loans." This sentiment resonates with the public’s growing anger over Thames Water's operational priorities, especially as they cope with the prospect of increased bills.
Steve Reed, Environment Secretary, reaffirmed the public's right to be upset during recent discussions, signaling governmental commitment to reform the sector aimed at cleaning the UK’s rivers, lakes, and seas. This indicates recognition at higher levels of government about the severity of the situation and its impact on communities across the UK.
While Thames Water argues for these increases as necessary for future improvements, the fervent backlash from politicians, environmental advocates, and customers signals the beginning of what could be significant changes not only for Thames Water but for the entire UK water sector.