Your water bill covers much more than just the cost of getting water to your tap and cleaning the wastewater we take away. It goes towards vital infrastructure investment, as well as protecting and enhancing the environment and making sure there is enough water for years to come. 

To ensure our charges are kept fair and clear, they are reviewed every year. Any changes to our charges will apply from the 1 April till 31 March the following year. We’re regulated by Ofwat who govern how all water companies set their bills and determine the amount of revenue we’re allowed to charge customers through water bills. We know that understanding bills can be complicated, which is why we’ve set out everything you need to know in this Q&A. 

Why are bills increasing? 
Ofwat regulates charging rules that govern how water companies set their bills to make sure they are fair and transparent. They oversee the amount each water company is allowed to charge customers through their water bills.     

Between 2025 and 2030, in agreement with Ofwat, we will deliver one of the industry’s largest programmes of investment – worth £11bn. Our region is the fastest growing in the country with over 700,000 more people expected to call it home in the next 20 years. We’re also on the frontline of climate change and one of the most water scarce regions in the country. It’s crucial that we continue to invest in our region’s water and sewerage infrastructure to prepare for these challenges, while continuing to ensure our services remain affordable, resilient, and accessible for all customers.    

While people will see an increase to their water bills from 1 April 2025, water bills will remain one of the lowest household bills for most of our customers, at around just £1.72 a day on average – less than a takeaway coffee. We will also continue to help customers who may be struggling to pay their bills with a package support worth over £80million, meaning we can tailor help to meet customers individual needs. 

Why is the increase higher than the rate of inflation? 
In the UK, water bills are regulated by Ofwat, which sets price limits on how much water companies can charge customers through a five-yearly price review process, ensuring a balance between affordability for consumers, and the ability of companies to operate, invest in new infrastructure and meet environmental responsibilities; We’re now beginning the first year of our 2025-30 business plan, meaning this increase was approved by Ofwat in December 2024 to accommodate the essential investment into our region’s infrastructure and environment.  

In essence, every year customer bills are based on this agreed increase, plus the effects of inflation, and adjusted according to company performance in the previous year.  

What will the extra money from the increase in customer bills go towards?  
Ofwat is clear that customer bills must remain affordable, and we wholeheartedly agree. We are working hard to ensure water bills are as low as possible, while still preparing our region to meet the significant challenges of a rapidly changing climate and a growing population, which puts extra demand on resources.  

This year alone, we are investing more than £2bn as part of an overall investment programme worth £11bn between 2025 and 2030. Bills need to rise to support this level of investment is if we are to prepare our region to meet the significant challenges of a rapidly changing climate, and growing population. This includes our strategic pipeline programme, where we’re building hundreds of kilometres of pipeline to transport water from the wetter parts of our region in the north to the drier south and east as well as planning for two new reservoirs.

What support is there for customers that can’t pay their bill, or are already in arrears? 
The vast majority of our customers pay their bills and for those that need help we hope the support we’re offering will make it easier to do so.    

This year, we have over £80m set aside for customers struggling with the cost of living. We’ll continue to work with those customers who need help, including offering free advice to help households understand what benefits they may be entitled to and giving discounts of up to 50% depending on people’s situation.