Water companies in England and Wales have secured approval to hike household bills by more than a third over the next five years, sparking widespread anger. According to METRO news, the increase averages an extra £31 annually per household and the critics described it as a “bloody disgrace.”
By 2030, the average water bill is projected to rise by 36%, or £157 in total, excluding inflation. This increase comes despite water firms initially lobbying for a 40% hike. As per the report, regulator Ofwat has justified the move as necessary for a £104 billion sector-wide upgrade, aimed at delivering lasting environmental and service improvements.
David Black, Ofwat’s chief executive, said the rise represents an opportunity for water firms to rebuild trust. “Customers will rightly expect them to show they can deliver significant improvement over time to justify the increase in bills,” Black said. He emphasized that stringent monitoring will ensure accountability while urging companies to support those struggling with payments.
The decision follows Thames Water’s warning that it could face insolvency by March without an emergency £3 billion loan, which campaigners estimate would cost the average person an additional £250 per year. Thames Water customers can expect a 35% increase, with bills reaching £588.
Meanwhile, Southern Water customers face the steepest hikes, with bills rising by 53% to £642 on average. Anglian Water and Dŵr Cymru customers will also see significant increases, while Wessex and Northumbrian Water customers will experience smaller rises of 21%.
The announcement coincides with ongoing infrastructure issues, such as a “technical issue” at Southern Water’s supply works, leaving 60,000 Hampshire homes without water. Critics argue these hikes come at a time when many water firms are under fire for pollution and infrastructure failings.
Black acknowledged the challenges customers face, stating, “We recognise it is a difficult time for many, and we are acutely aware of the impact that bill increases will have for some customers.”
The increases are unlikely to sit well with households already grappling with inflation and mounting living costs, with some labeling the decision as a betrayal of public trust.
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