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Competition & Markets Authority provisional decision

The Competition & Markets Authority (CMA) has published its provisional decision on how much we can charge customers from April 2026. We want to let you know what’s happening and how this may impact you.

Our appeal to the Competition & Markets Authority

The Competition & Markets Authority (CMA) is an independent organisation that makes sure companies in the UK treat customers fairly, including looking at whether their charges are reasonable.

Every five years, our regulator, Ofwat, sets limits on how much water companies can charge customers and what they must deliver — this is called the Final Determination. If a water company disagrees with the limit Ofwat sets them, it can appeal to the CMA and ask for an independent review.

Last year, we took the decision to appeal to the CMA as the original determination set out by Ofwat (in December 2024) wouldn’t allow us to deliver the improvements and new infrastructure that our customers rightly expect. Our plan for the next five years is our biggest and most ambitious to date, but to deliver it we need further investment. 

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The outcome from our appeal to the CMA and what it means

The CMA has published a decision and provisionally agrees that we need more funding to deliver our plan. This means that from April 2026, bills may change, depending on the final outcome from the CMA. We’re committed to being open and transparent about what’s happening, why it’s needed, and how we can support you. Once the CMA publishes a final decision, we'll provide a further update.

How we’re investing the bill increase

Over the last year, we've taken time to speak to many of our customers about the improvements you want to see. You’ve told us that we need to minimise flooding, reduce storm overflow releases, fix more leaks, and protect the environment. Changes are underway, but there’s still work to do.

A lot of the funding for future improvements will come from our shareholders, who have invested over £1.6 billion, that’s almost £1,500 per customer, since 2021 — with no external dividends paid since 2017. However, to fully deliver on our commitments we also need to increase bills.

Find out more about the improvements we're making in your area.

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Your questions answered...

The CMA (Competition and Markets Authority) is an independent organisation that checks whether business decisions — like changes to customer charges — are reasonable. It looks at whether prices are balanced, whether services are good enough, and whether businesses are doing the right thing.

In our case, the CMA is reviewing how much we can charge customers from April 2026. They’re checking whether the funding we’ve asked for is fair — and whether it’s needed to deliver the improvements you’ve told us you want to see. 

They don’t work for us or our regulator Ofwat — they’re here to make sure customers get a fair deal.

We've taken time to speak to many of our customers about the improvements they want to see. Changes are underway, but there’s still work to do.

To fund further improvements, we rely on a mix of shareholder investment and money from customer bills. Ofwat’s original decision on customer bills didn’t provide the funding needed to fully deliver our plan, so we asked the CMA to review it. 

The CMA has now provisionally agreed that extra investment is needed. This means that from April 2026, bills may change, depending on the final outcome. We’ll continue to talk with the CMA and keep you updated throughout.

The CMA has reviewed our plans and provisionally agrees that extra investment is needed. They’re helping make sure the final decision — and any impact to bills — is fair for everyone.

The CMA has published a decision and provisionally agrees that we need more funding to deliver our plan. This means that from April 2026, bills may change, depending on the final outcome from the CMA.

There will be no further changes to bills this year. Depending on the CMA’s final decision, our charges may change from April 2026. 

A lot of the funding will come from our shareholders. They’ve invested over £1.6 billion — almost £1,500 per customer — since 2021. We haven’t paid any external dividends since 2017 and don’t plan to until at least 2030. In addition to shareholder funding, we'll invest money from customer bills back into the business, to continuously improve the service we're delivering.

From April 2026, bills may change, depending on the final outcome from the CMA. The exact increase to your bill will depend on your individual circumstances.  

We offer a variety of support schemes, including discounts of at least 45%, capped rates, and help with clearing debt. From 2025, an extra £235 million support package is available for customers who need it most. Check if you’re eligible and apply.

If you’re on a meter, using less water in your house and garden may help you to reduce your bill. Making small changes to your daily routine, such as turning the tap off when you brush your teeth, having a shorter shower, or only running the washing machine when you have a full load can make a big difference. Around 20% of the water used in the home is heated, so saving water could also help to reduce your energy bill. View our simple water-saving tips.  

Getting a water meter fitted can help you understand how much water you’re using and potentially save you money on your bill. You can see if you’re eligible to have a meter fitted by applying for a water meter — it should only take a few minutes, and you can expect a reply within 48 hours.

If your drinking water is supplied by a different water company, you will need to contact them directly about getting a meter fitted. If you’re unsure who your supplier is visit www.water.org.uk and enter your postcode.