Water customers could face an extra £40 a year if the sector is hit by a credit rating downgrade, an industry chief warns
Sky News reported on Saturday 17 October that water customers face an extra £40 a year if the sector is hit by a fresh ratings downgrade, according to an industry chief. Google News business listings carried the same story. The Guardian separately reported on a south London bike shop hit by an unbearable stench from a Thames Water sewer. The reports reviewed do not name the rating agency or the date of any review. They do not say whether the £40 figure applies to every customer or is an average.
A lower credit rating raises the interest companies pay on borrowing, and water firms need heavy borrowing to fund pipes and treatment works. The cost is passed to households through bills set under the regulator's price rules, so the people who feel it are customers.
Look at your latest bill and the supplier's published plan for the next year, then compare the £40 warning with any increase already notified to you. Note that the warning is a possible outcome rather than an agreed charge, so do not change a direct debit on the strength of it.
A warning that bills rise if the market loses faith is also a reminder that customers pay either way, through the bill or through the smell. The sector is arguing about the price of its own credit while its customers argue about the service.
DailyDrop U.K. edition No. 14 · Morning · SUN., OCT. 18, 2026