Water: Infrastructure
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to the press release entitled Roadmap to rebuild trust in water sector unveiled in major new report, published on 21 July 2025, what proportion of the £104 billion water infrastructure investment will be funded by (a) water companies, (b) the public purse and (c) private third-party investors.
Answered by Emma Hardy
Over the next five years water companies will spend £104 billion on investment and operation combined. This is more spending than at any previous price review.
Ofwat set out in its final determinations that £44 billion of this spending would be on new infrastructure and resources.
In the first instance, this will be provided by private investors. Ofwat has estimated that investors will provide £12.7 billion in new equity during the spending period. The remainder will be funded by water companies, in part through debt in order to spread the costs of investment over the lifetime of the new assets.
In line with the funding model for the water industry, debt and equity investors will be repaid over time through customer bills.
Business plans for all water companies have been published by Ofwat.
Water company investment plans will require no contributions from general taxation.
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