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Household

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Our charges are subject to a formal system of price regulations and control, monitored and enforced by the Water Services Regulation Authority – better known as Ofwat.

Every five years Ofwat carries out a ‘Periodic Review’ of our costs, charges and future investment requirements.  Having considered our performance and efficiency in providing services (relative to the other companies in England and Wales), they set a series of annual price limits for each service for the 5 years covered by the review.  This determines how much revenue we are allowed to recover every year from each service.  In addition, they set out a series of performance measures that we are required to meet.  These performance measures, referred to as ‘Output Delivery Incentives’ or more often ‘ODI’s’, reflect customers priorities e.g., reductions in leakage, sewer flooding etc.  and can attract financial rewards and penalties – outperforming against an ODI and providing a higher level of service to customers can generate a financial reward, whilst underperforming can give rise to a financial penalty.

We have been allowed funding of £266 million over the 5-year period – up from £199 million in 2020-25.  This significant increase recognises a step-change in the Water Industry National

Environment Programme (WINEP), expenditure on the water supply-demand balance, water quality, increased resilience, improved asset health, investment to facilitate population growth and new houses and improved services to customers.  Further details of this overall investment and the performance measures that we have agreed to deliver over the next five years can be found below. 

The annual revenue controls set by Ofwat (see below) allow us to recover a fixed amount of revenue from our customers.  For most of our charges these are then modified by inflation, adjustments for performance and any over or under-recovery in previous years.

The annual increases set out in Ofwat’s Final Determination i.e. before any of the above adjustments are as follows: 

The above price controls and increases are to fund our investment programme which covers four areas: 

To mitigate the impact of the increases referred to above, customers may want to consider whether they can reduce their water usage.  Information on water efficiency can be found on our website by following the links below: