Water UK has welcomed a decision by the Competition and Markets Authority to return more than £500 million in funding to five water companies.
The money will supposedly help improve water pipes, treatment works and other key infrastructure that had faced spending limits.
The change could mean better services for customers but may also lead to higher water bills in the future.
'This process has been necessary to secure the investment our economy and environment need'
A Water UK spokesperson said the CMA’s findings “restore more than half a billion pounds in funding” that had been previously restricted.
“If these decisions stand, the CMA has overturned the limits set by Ofwat for how much five companies can invest in their infrastructure,” the spokesperson explained.
They added that “this process has unfortunately been necessary to secure the investment our economy and environment need,” highlighting that water companies require stability to deliver on environmental commitments and system upgrades.
Homeowners face uncertainty over future bills
The decision could have a direct impact on households, depending on how companies recover the costs of new investment.
While Water UK has not addressed bill levels directly, the restored funding may eventually influence how much customers pay.
Consumer advocates say families will want reassurance that the investment will translate into visible improvements – such as fewer leaks, cleaner rivers and more reliable service – rather than higher household costs.
Anne Pardoe, Head of Policy at Citizens Advice, has already said: "Ramping up water bills, when people up and down the country are already rationing showers and cutting down on laundry, is going to stretch budgets beyond breaking point."
'The country needs that to happen as soon as possible'
Water UK also echoed the CMA’s call for change, saying the decision highlights the need for structural reform in how the sector is regulated.
“As the CMA acknowledges, the system requires urgent reform,” the spokesperson said. “The government has said it will abolish Ofwat and set up a new regulator. The country needs that to happen as soon as possible.”
The statement reflects growing industry frustration with a regulatory system seen as too slow to support modernisation. For homeowners, the next stage of reform could determine not just how much they pay for water, but how well their local networks can cope with growing environmental pressures.
