This is a guest article authored by Ofwat and the Consumer Council for Water.
Since 1 April 2025, water bills across Wales have increased.
This is because Ofwat, the water regulator, has approved the investment needed to deliver water company plans for 2025-2030 in its 'final determinations' of the 2024 Price Review (PR24).
In making these decisions, Ofwat has worked closely with customers and stakeholders, like the Consumer Council for Water (CCW) and Natural Resources Wales (NRW), to gain a thorough understanding of what companies should be delivering for customers and the environment both now and over the longer term. This work includes tackling storm overflows, reducing leakage, and maintaining and improving reservoirs.
During the next five years, water companies Dŵr Cymru Welsh Water and Hafren Dyfrdwy must deliver significant improvements to the water system and their services for customers. The scale of the required investment, and the increased cost of financing it, means bills will have to rise.
This article sets out what the bills will pay for and what support is available from your water company to help with bills.
What will be delivered for Wales
A total of £6.3bn will be spent by water companies in Wales between 2025-30.
Of this £1.7bn will go towards meeting new requirements set out by NRW under the National Environment Programme – seven times more than was secured in the last Price Review in 2019. The Programme sets out actions companies need to take to make rivers and seas cleaner by reducing harm from storm overflow spills, improve wastewater treatment standards, and reduce nutrient pollution.
Additional funding will be spent on issues such as improving asset resilience, reducing leakage and reservoir safety.
Figure 1: Water companies in Wales planned investment 2025-30
Source: Ofwat
As part of PR24, both companies produced detailed plans, explaining what they want to do over the next five years and how they will deliver on legal requirements. Ofwat has reviewed and challenged these plans to ensure they are efficient, necessary and provide value for money, spreading the costs of investment fairly between current and future customers.
Both Dŵr Cymru Welsh Water and Hafren Dyfrdwy have accepted their determinations and are now working to deliver their plans in Wales.
Ofwat will be closely monitoring company performance over the next five years. If companies do not meet their targets, they face automatic penalties, reflected in reduced bills. But there are incentives to beat the targets, and good performance will be rewarded.
Ofwat will continue to follow up concerns about ongoing performance, financial resilience, or delivering investment with increased monitoring and engagement, setting clear expectations of what actions are required. It is also introducing extra oversight measures for consistent poor performers and stronger controls so that funding can be clawed back and returned to customers if companies do not deliver on their plans.
Impact on customer bills
Ofwat sets the cap on what water companies can charge during the five-year period.
The water companies then decide within that limit what they will charge their individual customers every year. This decision is informed by the level of investment needed to deliver the infrastructure and service improvements they have planned.
Dŵr Cymru Welsh Water and Hafren Dyfrdwy have set out their annual charges for 2025-26 on their websites.
Many other household costs are also rising, so these bill increases will impact everyone and be difficult to afford for many people.
Ofwat and CCW have challenged companies to improve the support available for customers, and both Dŵr Cymru Welsh Water and Hafren Dyfrdwy have increased the provision of subsidised bills known as 'social tariffs' for those who may need it.
CCW has also been calling for the introduction of a Single Social Tariff across England and Wales to eradicate water poverty by 2030. The Water (Special Measure) Act 2025 has now made this possible in England.
What support is available for customers?
CCW is the independent voice for water consumers in England and Wales. CCW’s advice hub is packed with information, ideas and useful tools to help reduce water bills or access financial support, including advice on the different types of water company schemes. Have a look here first to act fast before payments become a problem.
If you or someone you are trying to support are worried about paying the water bill, there are steps you can take. Here is CCW’s top three tips on getting financial assistance.
1. Talk to your water company. Water companies understand some people will need support and speaking to them is important. A conversation might lead to reduced bills through the water company’s social tariff or support from other assistance schemes, such as This scheme can cap the bills of metered customers in receipt of means-tested benefits who have higher water use due to a medical condition or having three or more children. If you are already in debt, your water company may also be able to support you in getting back on track with payments. You can check the water company operating in your area or the area of the person you are supporting here.
- The two water companies operating in Wales have pages to guide you through their specific support:
- Dŵr Cymru Welsh Water support micro site
- Hafren Dyfrdwy support micro site
2. Trial a water meter. Use CCW’s water meter calculator to get an idea of whether you might be better off trialling a water meter. In Wales, you have two years to trial a meter with the option to switch back to unmetered charges if you’re unhappy.
3. Claim what’s yours in benefits and other assistance. CCW has a Better off Calculator which you or the person you are supporting can use to explore what benefits and other support you may be entitled to. In Wales, Advicelink Cymru provides a similar service. More information and links can be found on the Welsh Government’s Claim what's yours campaign webpage
4. Finally, consider adding yourself or a person you support to the water company Priority Services Register. Priority services assist customers who may need extra help because of illness, disability or language barriers. You can read more about this service on CCW’s page: Extra free help - priority services. Both water companies in Wales (and all in England) allow customers to register for this support:
- Priority Services Register - Dŵr Cymru Welsh Water. You can also request a copy or complete the form over the phone by calling 0800 052 0145. Alternatively, you can request one via text relay on Telephone or text 18001 and the number you want to call.
- Help when you need it - Hafren Dyfrdwy. You can also contact the company on the billing enquiries line0330 678 0679.
If you would like to contact anyone regarding the content of this article, please reach out to Ofwat or CCW.
This guest article has been prepared by Kate Evans, Head of Wales, Ofwat; Geraint Davies, Senior Associate Customer Policy, Ofwat and Lia Moutselou, Senior Leader Welsh Policy, Consumer Council for Water.
Any views are those of Ofwat and / or the Consumer Council for Water and not those of Senedd Research.
