Thames Water to get green light to hike bills by more than a third by 2030

Thames Water has said it needs higher bills to maintain its ageing assets, prevent leaks and tackle pollution. Photograph: Mina Kim/Reuters

Troubled Thames Water will be allowed to increase customer bills by just over a third by 2030 after a decision by the industry regulator, the Guardian has learned.

Ofwat is poised to announce on Thursday that the heavily indebted company, which serves 16 million consumers in London and the Thames Valley area, will be permitted to raise bills by just over half the level the company had demanded.