Water company executives could face pay freezes following widespread criticism over sewage spills and leaks, the regulator Ofwat has indicated. Ofwat chief David Black said he was 'angered' by excessive chief executive pay in the industry and admitted there were 'hard lessons to learn'.
Despite the criticism, Mr Black told the BBC that customer bills were likely to rise from 2025 as companies seek to fund large investment programmes to improve services. Former environment secretary George Eustice said bills could increase by about £42 per household on average over a 'long time frame', dismissing reports of a 40% rise as 'far lower'.
Campaign group Surfers Against Sewage condemned any potential bill increases, stating that consumers should not 'bear the burden of water company mismanagement'. They accused firms of siphoning funds into shareholders' pockets instead of delivering on environmental services.
Thames Water, which supplies a quarter of the UK population, is at risk of being taken over by the government due to its £14bn debt. Mr Black said the company had until early next year to find the money, but stressed that a 'special administration regime' remained a 'backstop option'. He denied that customers would have to pick up the tab if the company went bust.
Water companies across England and Wales must submit their business plans for 2025-2030 to Ofwat by 2 October, including planned improvement works. The regulator will then issue guidance on bill setting early next year.
