Lucy Hooker

Ofwat has provisionally approved an additional £3.4bn for 13 water companies in England and Wales, with much of the cost expected to be recovered through customer bills. Five firms will impose extra increases within the next two years, including a £43 rise for Southern Water customers next year, while the remaining companies will recover costs after 2030. The funding is intended for infrastructure maintenance, growth linked to housebuilding and data centres, wastewater capacity, reservoirs and action against PFAS chemicals. Consumers and environmental groups object that bills are rising despite persistent leaks, service interruptions and pollution, while water companies argue that greater investment is necessary and Ofwat says funding can be clawed back if promised improvements are not delivered. The decision remains provisional, with a consultation and final approval expected in December.