Back to today’s briefing

Story perspectives

Ofwat consults on drought tariff hikes for water firms

8/17/2026

42 9 Full Breakdown

Center

Ofwat Drought Tariffs

In August 2026, England’s water regulator Ofwat opened a consultation to allow water companies to raise tariffs during droughts.
The consultation notes that 71 % of England is in drought and pilot schemes have cut household water use by up to half.
Over 27 million people face water-use restrictions as reservoirs sit 11.6 % below expected levels.
Water bills rose 5.4 % in April 2026, adding an average £33 annual increase per household.

Left

Ofwat Raises Tariffs

In August 2026, Ofwat began a consultation to let English water companies raise tariffs during droughts.
Public anger grew as firms keep large dividends while households face high energy costs; Prime Minister Andy Burnham called the plan a ‘blank cheque’.
Five water firms received provisional approval to raise bills ahead of schedule.
Greenpeace UK found water firms lose 2.87 billion litres through leaks, enough for 1,150 Olympic pools.

Blindspot

Blindspot

Greenpeace UK research found water companies lose 2.87 billion litres of water per day through leaks, enough to fill 1,150 Olympic-size swimming pools.
Within this story's sources, this angle appears mainly in Left-leaning coverage and receives less attention in Center-leaning coverage.

History

Historical Context

The severe summer of 1976 prompted Parliament to pass the Drought Act and later the 1989 Water Act, establishing price controls that still guide UK water policy. On 29 July 2026 the Environment Agency declared drought across half of England, with reservoir storage falling to 75.3 % and temporary use bans affecting about 23 million customers. The 1976 experience informs today’s regulatory and conservation response.

1 of 4

Ofwat Drought Tariffs

In August 2026, England’s water regulator Ofwat opened a consultation to allow water companies to raise tariffs during droughts.
The consultation notes that 71 % of England is in drought and pilot schemes have cut household water use by up to half.
Over 27 million people face water-use restrictions as reservoirs sit 11.6 % below expected levels.
Water bills rose 5.4 % in April 2026, adding an average £33 annual increase per household.

1 / 4