Environment Secretary Intervenes in Water Price Review for First Time
Dame Angela Eagle has written to regulators and to water company chief executives in England and Wales setting conditions for the next five-year price review, which concludes in 2029. She told them affordability must come first. The intervention stops short of demanding that bills be cut.
The letter’s central demand is that “affordability means a laser focus on value for money for customers”, and it warns company bosses that this will “not be a business-as-usual price review… it is the beginning of a long-term transition to a different model for the water sector”. Alongside affordability it requires investment in new technology and in early intervention on leaks and sewage, and more decision-making power for local communities and leaders. The reason it matters is the last review. In 2024 the regulator authorised a £104bn modernisation programme and set average bills on course to rise 36% across the second half of the decade; the largest single allowance went to Southern Water, whose customers face paying 53% more by 2030, an average of £642 a year. Thames Water, separately, has recently asked its creditors for a further £2.4bn. A ten-year plan due after the Budget is expected to hand ministers firmer powers to lower bills and direct investment. Two honest limits: this rests on a single outlet, and the letter itself has not been published.