Londoners face an increase in water bills as the city’s beleaguered supplier plans £18.7 billion ($22.7 billion) of total investment to fix a crumbling network.
Thames Water Ltd. is drawing up plans for costly repairs to aging tunnels and pipes to stem chronic leaks and sewage spills. The utility has been at the center of a crisis that’s roiled the industry this year as mounting calls from the public and politicians to clean up UK waterways coincided with soaring debts.
The company said Monday its proposed investment — running from 2025 to 2030 — would help fund a 28% reduction in storm overflows and a 30% decline in the number of pollution incidents. The average monthly bill may rise by £14.55, which amounts to an increase of about 48%, according to Bloomberg calculations.
Regulator Ofwat has already said water bills for households in England are set to rise 35% on average by the end of the decade. UK utilities plan to invest £96 billion in the five years to 2030 to expand and fix leaky networks, and have been submitting individual spending proposals to the watchdog for approval.
Thames and Southern Water Ltd. were named last week as the industry’s worst performers by Ofwat, which imposed penalties on both because of a failure to meet delivery targets. Southern on Monday announced a £7.8 billion business plan and said it’ll seek to refinance £1.2 billion of debt.