Dŵr Cymru Welsh Water has written to Ofwat to confirm its acceptance of the water sector regulator’s Final Determination of the Price Review for its AMP8 2025-2030 business plan.

Ofwat’s Final Determination will facilitate an increase of 58% in total expenditure (compared to 2020-25) to £6 billion over the five year period, including £4.2 billion capital investment.

Welsh Water has also confirmed that the average Dŵr Cymru Welsh Water household customer bill will increase by 27% for 2025-26, from £503 to £639.

Pete Perry, Welsh Water’s Chief Executive said:

“We have thoroughly reviewed Ofwat’s Final Determination, and the detailed commitments contained therein, and intend now to focus solely on gearing up to deliver on our obligations to customers and regulators over the next five years and beyond. We recognise that Ofwat has made significant change since the Draft Determination and believe that the Final Determination now more closely reflects the business plan we submitted.

“Whilst we believe the outcome of the process represents good value for customers over the next five years, the Final Determination still presents significant challenges for the business to deliver, but we are focused and committed to delivering for our customers. We are absolutely focused on achieving performance levels that move us out of our current ‘lagging’ status as assessed in Ofwat’s annual Water Company Performance Report.

“We appreciate the collaborative efforts that have taken place throughout this process, including the engagement with Ofwat and Welsh stakeholders such as Welsh Government and Natural Resources Wales, and the careful consideration given to our representations on the Draft Determination. Despite its challenges we believe the Final Determination reflects a balanced approach to addressing the overall risk and return package, affordability of bills, the requirements of the environmental regulators, and the sustainability of our operations, as part of a long-term plan to deliver the outcomes our customers and stakeholders expect.”

The price increase compares to an industry average rise of 26% and follows a fifteen year period when the company kept price rises below the rate of inflation and

The AMP8 investment will fund work to reduce pollution, upgrade and build new vital assets, reduce leakage, and improve water quality. The work will create 2,000 new jobs in the water company’s supply chain.

Some of the schemes that will be started during 2025-26 include:

• improving river quality in Corwen, Llanfoist, Letterston and Lampeter
• work on 23 storm overflows
• 75km of mains replaced, mostly in west Wales
• work to upgrade the dams at Cwm Celyn, Usk, Cwmwernderi Tower and Craig Goch.

Welsh Water has a range of support available to customers who are struggling to pay their bills. The company contributes £14 million a year to maintain the company’s social tariffs schemes that help those who are struggling, by limiting the amount they pay.

The schemes currently support 150,000 customers, with Welsh Water’s not-for-profit model funding £73 million over the next 5 years for our financial support packages. Over the past five years £64 million has been used to fund social tariffs.

Welsh Water Interim Chief Financial Officer Samantha James added:

“We understand the financial pressures that some of our customers are facing, and we are doing more than ever before to help those who are struggling.

“If you are struggling to pay your bill, please get in touch with us. We have a dedicated team who can help you find what you are entitled to. We have a strong track record of providing meaningful financial support to those that need it’

“Over the past 15 years we’ve done all we can to keep bills low and affordable for our customers, delivering financial support packages to ensure all our customers have access to our services.

“But now it’s time for a step change in investment, to improve performance and service delivery, adapt our networks to the climate crisis, and do more to protect our rivers and seas.

“This record investment will help us deliver the improvements our customers want to see.”