- Water companies will increase bills by £144 over the next five years
- Spending in the sector set at £88bn for 2025-30
Water groups Severn Trent (SVT) and United Utilities (UU.) propelled the FTSE 100 upward this morning – despite regulator Ofwat rejecting the sector’s proposed bill hikes. Both companies gained 4 per cent in the first few hours of trading today, while their smaller peer Pennon (PNN) received a 10 per cent boost.
These reactions seem somewhat anomalous, given water companies had hoped to charge consumers an average of £144 more across the next five years. In its draft decision on spending, Ofwat set the average bill increase at £19 a year, or £94 in total between 2025 and 2030. Severn Trent said Ofwat had approved enough of a bill rise to support spending that would take its regulatory capital up to £15.1bn, compared with the £15.7bn it had outlined in its pitch for the five years to 2030.