Millions of households are set to experience an increase in their water bills beyond the previously agreed amounts due to complaints from five companies to the competitions watchdog. Ofwat had initially permitted 16 water companies to raise bills by an average of £157 over a five-year span from 2025 to 2030.
Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water contested that the approved increment would hinder their ability to meet regulatory obligations. Following their appeal to the Competitions and Markets Authority (CMA) to raise an additional £2.7 billion in revenue, an independent review granted them an extra £463 million.
This adjustment is anticipated to lead to an average 2.2% rise in bills for customers. The specific increases vary among suppliers, with South East Water permitted to raise bills by an extra 4% to £284 annually. Meanwhile, Southern Water and Wessex Water will up their bills by 3% to £641 and £614 per year, respectively. Anglian Water will see a 2% rise to £602 annually, while Northumbrian Water will not implement further increases. These companies collectively serve around 14 million individuals.
The CMA aimed to strike a balance between minimizing the impact on households and ensuring suppliers have sufficient funding. However, a public body representing water consumers expressed concern that the additional bill hikes may surpass what many customers can afford.
Moreover, water companies are facing growing criticism over escalating bills alongside issues like leakages and untreated sewage being discharged into water bodies. The Consumer Council for Water’s CEO, Mike Keil, highlighted the challenges faced by households with the rising costs and emphasized the need for a fairer appeal process to challenge price hikes.
Chair of the independent group, Kirstin Baker, stated that while most of the requested bill increases were rejected, limited extra funding was allowed where necessary to maintain water supplies and reduce pollution. The adjustments in bill amounts reflect market changes since Ofwat’s earlier decision.
The revised yearly bill averages for customers have been detailed, emphasizing the importance of water-saving measures to reduce costs. Simple actions like reducing shower time by a minute and using water-saving devices can make a significant impact on bills. Initiatives like obtaining a water meter and exploring free water-saving products can also contribute to savings.
