UK water regulator says bills can rise by 36% over 2025-2030

LONDON (Reuters) -Britain's water regulator said it would allow bills to rise by an average of 36% over the next five years to fund a much higher level of investment than originally slated, with the aim of fixing the country's broken water sector.

The bill rise permitted by Ofwat compares to the average 44% requested by companies, and is higher than the 21% the regulator had guided in July.

Britain's government in October called on Ofwat to allow more investment to fix the water sector after frequent sewage spills sparked public anger.

Critics say the private owners are to blame for taking dividends out of the companies over the years while neglecting infrastructure, but the sector says Ofwat has prioritised lower bills for consumers, limiting investment.

Ofwat said on Thursday that the bill increases would lead to a 104 billion pound ($131 billion) upgrade to cut sewage spills and invest in infrastructure. It said a claw back mechanism would mean any money not spent on investment would be returned to customers.

($1 = 0.7937 pounds)

(Reporting by Sarah Young; Editing by Kate Holton)