Water customers could pay an extra £40 per year if water companies experience a credit ratings downgrade, according to the head of the industry's main lobbying group. The warning highlights concerns about the cost to consumers if the sector's financial standing deteriorates.
A downgrade in credit ratings would push up the cost of borrowing for water companies, which could ultimately be passed on to customers through higher bills. The industry body raised the prospect as a potential consequence of such a financial setback.