Key facts
- Government intervention in water bill setting is unprecedented.
- New powers aim to lower bills and direct investment.
- Focus on value for money, leaks, and sewage overflows.
- Previous price review led to a 36% average bill increase by 2030.
- Thames Water is exploring options for additional funding.
The UK government is set to intervene in the setting of water bills and company investment strategies, marking an unprecedented move. Environment Secretary Angela Eagle plans to influence the next price review conducted by the regulator Ofwat, aiming to ensure better value for money for customers and address issues like leaks and sewage overflows. This intervention is part of a broader 10-year plan to transition the water sector to a new model. The government is also considering options for struggling company Thames Water, which is seeking additional funding. Previous price reviews have led to significant bill increases, drawing criticism from politicians and campaigners.