{"id":39192,"title":"Water Bills Set to Surge as United Utilities and Pennon Strike Deal with Ofwat","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2025-01-30T06:00:09+00:00","modified":"2025-01-30T06:00:09+00:00","canonical_url":"https://stockmark.it/water-bills-set-to-surge-as-united-utilities-and-pennon-strike-deal-with-ofwat/","markdown_url":"https://stockmark.it/water-bills-set-to-surge-as-united-utilities-and-pennon-strike-deal-with-ofwat.md","json_url":"https://stockmark.it/water-bills-set-to-surge-as-united-utilities-and-pennon-strike-deal-with-ofwat.json","category":"Infrastructure","categories":["Infrastructure","Investment","Utilities","Water and Sanitation"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2025-01-30T055948.000.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"Major water suppliers have reached a significant financing agreement with industry watchdog Ofwat, leading to substantial bill increases for millions of households over the next five years.\n\nPennon Group, which owns South West Water, has announced plans to raise £490 million through a shareholder rights issue. The move comes as part of a settlement that will see West Country household water bills climb 23 per cent to £610 by 2030, before inflation adjustments.\n\nUnited Utilities, serving the northwest of England, has also finalised its regulatory settlement. Their customers face a steep 32 per cent increase over the five-year period, pushing average bills to £585 before inflation-linked rises.\n\nBoth companies have committed to maintaining dividend payments to shareholders, with annual increases linked to the consumer prices index (CPIH). Pennon’s fundraising initiative offers shares at 264p, representing a 35 per cent discount to recent trading prices.\n\nThe capital raised will support ambitious infrastructure projects. Pennon has outlined a £3.2 billion spending programme, including storm overflow improvements and a new reservoir at Cheddar. United Utilities plans to invest £13 billion, with £2.4 billion earmarked for sewer overflow systems and £2.9 billion for upgrading the crucial Haweswater aqueduct.\n\nMarket reaction has been positive, with Pennon shares rising 3 per cent to 533p and United Utilities gaining nearly 2 per cent to 997.6p. The focus now shifts to financially troubled Thames Water and Southern Water, who are yet to announce their positions on the Ofwat settlement, which permits bill increases of 35 per cent and 53 per cent respectively."}