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CMA Panel Allows £463 Million for Five Water Firms, Adding 2.2% to Bills

The ruling permits limited funding to reflect higher financing costs, with most requests rejected.

Overview

  • The final redetermination grants 17% of the £2.7 billion sought, cutting the provisional £556 million allowance to £463 million after consultation.
  • Average bills for customers of Anglian, Northumbrian, South East, Southern and Wessex are expected to rise by 2.2% on top of the 24% increases previously set by Ofwat.
  • The £93 million reduction from the provisional figure is largely attributed to market movements that lowered assessed financing costs.
  • Any extra revenue is tied to defined outputs and performance, with Ofwat able to claw back funds if companies fail to deliver projects.
  • Full determinations have been submitted to Ofwat and Defra, triggering a minimum two‑week statutory process before publication, as consumer advocates decry affordability and call for appeal‑process reform.