(Bloomberg) -- Thames Water will spend another £400 million ($508 million) upgrading a pair of treatment works to secure the drinking supply for 16 million customers in London.

Industry regulator Ofwat approved further funding under the current spending plan that runs to 2025, according to a Thames Water statement Tuesday. The upgrades at Coppermills and Hampton plants will replace aging infrastructure and build new treatment capabilities, the company said. The projects are due to be completed in 2032.

Thames is waiting for approval of its next five-year business strategy and is under pressure to prove to Ofwat that it’s delivered on investment promises from the current plan. Customer bills likely will rise to fund the huge spending needed to fix Britain’s leaky water infrastructure.

Water firms proposed raising bills by an average of 35% from 2025 to 2030, but Ofwat hasn’t yet signed off.

“As the population of London increases and we experience hotter and drier summers, we continue to see the demand for water grow,” said Esther Sharples, Thames Water’s chief operating officer. “Investing in the condition of our assets is core to our continued turnaround.”

This latest spending approval is a rare piece of good news for Thames. It’s waiting for a ruling on whether it paid dividends to parent company Kemble Water when it shouldn’t have, and it faces fines over sewage leaks.

Thames Water’s Future Hangs on Ruling Over Investor Payouts

In addition, Kemble faces an April deadline for repaying a £190 million loan unless it can amend and extend the terms.

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