The UK government’s water-reform plan expects Ofwat to deliver its agenda in PR29 with three other regulators, in a review cycle that sets limits on what water companies can charge.
The Guardian reported Friday, Oct. 23, that Environment Secretary Angela Eagle had written to regulators and water-company chiefs ahead of the review, urging a stronger emphasis on affordable bills and customer value.
The outlet said the letter also pressed companies to adopt cost-saving technology, address leaks and sewage overflows sooner, and give local communities and leaders more influence over decisions. It reported that Eagle stopped short of demanding lower bills.
The Guardian quoted Eagle as writing, “Affordability means a laser focus on value for money for customers.” The Guardian described the planned intervention in the price-review process as unprecedented.
Ofwat’s framework shows the five-year schedule: it reviews company proposals and sets price limits for each period. The government white paper identifies PR29 as the next review and expects Ofwat to work with the Drinking Water Inspectorate, Environment Agency and Natural England to deliver the reform agenda.
The current cycle began with Ofwat’s 2024 PR24 decision, which backed £104 billion in spending for 2025–30. Ofwat said most household bills would rise to help finance upgrades, linking investment in water systems with costs paid by customers. The funding supports infrastructure upgrades during the same period covered by PR24.
In March 2026, the Competition and Markets Authority issued final redeterminations for five companies’ disputed PR24 price controls.
The white paper pairs affordability with infrastructure investment, environmental improvements and long-term resilience. It says the government will retain five-year price reviews while adding planning horizons of five, 10 and 25 years. The government plans to publish a Transition Plan in 2026 with a timetable for reforms and guidance for PR29.
