Ofwat to Cut Thames Water Revenues by £187.1m in Next Five-Year Plan
On 10 December 2025, Sky News reported that the water regulator Ofwat will reduce sector revenues by about £309 million over five years until 2030. Thames Water is set to face the largest cut of £187.1 million, affecting its revenue from 2026 through to 2030 as part of regulator-approved five-year spending plans.
Thames Water serves approximately 16 million people in England and carries a significant debt of about £17.6 billion. Due to concerns about the company's financial stability, the government has prepared insolvency practitioners in case of a potential collapse.
This update represents a technical revision to initial revenue projections published in December 2024, following the company's better-than-expected financial results during the summer. Ofwat indicated that the revenue reductions reflect improved company performance, meaning customers will be required to contribute less money going forward.
