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Regulator Ofwat has signalled that it will allow water companies to lift bills further than initially proposed after the industry argued that it needed more money to invest in Britain’s ailing infrastructure.
Ofwat said on Tuesday the industry had made a fresh push to increase prices beyond the regulator’s draft decision in July to fund an additional £7bn of investment, which would take the total to £108bn.
“This increased expenditure request will, if approved, increase customer bills compared to our draft determinations,” it said.
Water companies are currently negotiating with Ofwat the extent to which they can raise real terms bills over the five years until 2030, with a final decision expected in December or January.
In July the water regulator for England and Wales angered the sector by rejecting its demand for an average 29 per cent increase in…