Gofrixty [21 July 2025] – A landmark report has warned that domestic water bills could surge 30% in the next five years as they called for a full review of the UK’s water regulation system.The report, authored by the prominent economist Professor Dieter Helm, claims that Ofwat – the current regulator – has let down both consumers and the environment.
Private water companies are allowed by Ofwat to “put water bills up to maximise its profits over the long term.This is while “investing as little as possible” and ignoring its environmental and long-term responsibilities, said Prof Helm.He believes the current model is “broken” and wants to see Ofwat scrapped so it could be replaced with a new regulator that focusses on sustainability rather than profits, public interest and long-term planning.
The report underscores a mounting level of public frustration over water pollution, sewage overflows and an overall lack of transparency in how water companies function. Nevertheless, businesses are paying record sums out in dividends to shareholders as they pass on higher costs to customers.
“There is already pressure on people’s incomes,” Professor Helm said.“If anything we should be paying less since energy bills are climbing, water prices are up and now inflation is increasing too, so it’s ludicrous that the public should have to pay extra for poor service and environmental degradation.”
