The UK Competition and Markets Authority (CMA) has issued provisional redeterminations regarding water price controls, significantly rejecting the majority of the increases requested by five water companies. This decision is expected to lead to an average increase of 3% in customer bills, in addition to a previously anticipated 24% increase from Ofwat's original determination.

In December 2024, Ofwat had set the price control for the 16 regulated monopoly companies for the period 2025 to 2030, which would result in an average bill increase of £157 over five years. The five companies involved—Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water—argued that Ofwat's decision left them unable to meet regulatory requirements and requested a redetermination from the CMA.

The CMA's Independent Group conducted a thorough review over the past seven months, analyzing evidence from the companies, Ofwat, and over 40 third parties, including environmental and consumer groups. The Group's provisional decision allows for an additional £556 million in revenue, which is 21% of the total £2.7 billion requested by the companies.

This additional funding is intended to help the companies meet new legal requirements and improve supply resilience and pollution reduction efforts. The Group has also emphasized the need for companies to be held accountable for performance, tying funding to defined outputs and requiring penalties for underperformance.

Chair of the Independent Group, Kirstin Baker, stated that the requests for significant bill increases were largely unjustified, and the Group aimed to minimize the impact on household budgets while ensuring essential improvements could be funded at a reasonable cost. The CMA will now consult on the provisional decision, allowing for public responses.