13th Aug 2026 16:46
(Alliance News) - United Utilities Group PLC and Pennon Group PLC on Thursday said they welcomed the UK water regulator's decision to allow providers to further increase bills.
PA reported that as part of Ofwat's plans allowing suppliers to spend an extra GBP3.39 billion, below the GBP4.29 billion requested, the regulator revealed in its draft determination that five of 13 suppliers across England and Wales are set to be given permission to increase charges for customers between 2027 and 2030.
This is intended to help upgrade networks to cope with new housing and data centres and tackle 'forever chemicals' to ensure drinking water is safe and reliable.
The water companies given permission to raise their bills are Thames Water, Severn Trent PLC's Severn Trent Water, Southern Water, Wessex Water and South East Water.
Ofwat will consult on the draft decision until September 24, and the final decision is expected in December.
Warrington-based United Utilities is allowed to spend an extra GBP995 million, below its requested GBP1.11 billion. Exeter, England-based Pennon's SES Water is allowed to spend an extra GBP10 million, having requested GBP12 million.
"The Draft Decision includes allowances of c.GBP975 million and keeps us firmly on track to deliver approximately GBP2.5 billion of investment through the annualised AMP8 re-opener mechanism," United Utilities said. "This investment will enhance resilience across our network and provide additional water and wastewater capacity, to support economic growth in the North West enabling the government's housing, digital infrastructure and climate policy ambitions."
The firm reiterated its financial framework, which it said includes around GBP11.5 billion of capital investment, and the expectation of around 10% annual regulatory capital value growth to approximately GBP25 billion by 2030.
It noted that "Ofwat has requested additional evidence for a limited number of projects as part of the consultation process," saying it looks forward to "continuing our constructive engagement with Ofwat".
"It is great to see this in-period regulatory mechanism working well, providing the opportunity to deliver the additional infrastructure needed to support the rapid economic growth we are seeing here in the North West," commented United Utilities Chief Executive Officer Louise Beardmore.
Pennon, meanwhile, stated: "We welcome Ofwat's draft determinations for Pennon Group which confirm that they will allow GBP190 million of additional investment for FY27/28 through to the end of AMP 8. The draft determinations reflect the core business cases we proposed and the strength of our submissions.
"We will review the draft determinations in detail and we look forward to a constructive dialogue with Ofwat ahead of responding with our representations by the due date of 24 September 2026."
United Utilities shares were down 0.3% at 1,426.00 pence on Thursday afternoon in London. Pennon shares were up 0.2% at 468.80p. Severn Trent's were up 0.1% at 3,108.00p.
By Emma Curzon, Alliance News reporter
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