In its reponse to Ofwat’s draft decisions as part of its price review, Thames Water has claimed it would need a 59% increase in customer bills to survive its funding crisis.

In recent years, Thames Water, the UK’s biggest water company, has increasingly found itself in hot water – mostly due to the £14bn debt it has accrued.

To help claw its way out of this debt, the private firm stated earlier this year that it would require an increase in customer bills of 40% (59% after accounting for inflation).

In July 2024, water regulator Ofwat unveiled its draft proposals as part of Price Review 2024 (PR24). This sets the price, investment and service package for water companies in England and Wales over the period from 1 April 2025 to 31 March 2030. These PR24 draft decisions outlined how water companies must significantly increase in investment over the next five years.

As part of these proposals, Ofwat said Thames Water – which it had since put in a form of special measures under which it is...