Millions of households are set to experience higher water bills than initially approved due to complaints by five companies to the regulatory body. The water regulator, Ofwat, had sanctioned a £157 average bill increase for 16 water companies over a five-year span from 2025 to 2030.
The companies in question, including Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water, contested that the approved increment would impede their compliance with regulatory standards. Consequently, they sought permission from the Competitions and Markets Authority (CMA) to raise an additional £2.7 billion in revenue. Following an independent review, they were granted an extra £463 million.
This adjustment is anticipated to lead to an average bill rise of 2.2% for consumers. While this adds to the previously approved 24% increase, it is lower than the provisional 3% rise granted in October. Specific increases vary among suppliers, with South East Water authorized to escalate bills by 4% to £284 annually.
Southern Water and Wessex Water will see bills go up by 3% to £641 and £614 per year, respectively. Anglian Water can raise customer bills by an additional 2% to £602 annually, whereas Northumbrian Water will not impose further hikes. Collectively, these companies cater to around 14 million individuals.
The CMA emphasized the need to strike a balance between lessening the impact on households and ensuring adequate funding for suppliers. However, a consumer advocacy group highlighted that the additional increases could still burden many customers financially.
Moreover, ongoing public discontent surrounds water companies due to soaring bills coinciding with environmental concerns like leakages and untreated sewage discharge into water bodies. The Consumer Council for Water’s CEO expressed concerns over the affordability of these hikes for customers and advocated for a fair appeal process to address the power dynamics between consumers and water firms.
The independent group’s chair justified the limited extra funding granted to the companies, aiming to address both affordability concerns and the imperative to enhance water supply security and reduce pollution. The revised bill amounts illustrate the average yearly costs for customers.
Although switching water providers is not an option, there are ways to economize on water bills, such as reducing water usage and exploring free water-saving devices. Installing a water meter could also lead to savings, especially for households with more bedrooms than occupants, as recommended by financial expert Martin Lewis.
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