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Water companies in England and Wales want bills to rise between 24% and 91% over the next five years, according to figures compiled by the consumer watchdog.
Southern Water is claiming the biggest jump of 91%, according to the Consumer Council for Water (CCW), with South Staffordshire and Cambridge Water claiming the smallest rise of 24%.
Water companies say the increase will fund £100bn of spending over the period, which will include replacing aging pipes, leaking pipes and reducing waste water discharges into rivers and seas.
The latest demands to increase the bill come ahead of a key meeting this week when industry regulator Ofwat will decide what companies can charge between 2025 and 2030.
Water companies have been heavily criticized for widespread leaks and the amount of wastewater being released, which critics have blamed on underinvestment in the country’s infrastructure.
Fewer than one in six customers consider rising water bills to be acceptable, according to Ofwat research that required companies to treat their customers.
The regulator is unlikely to approve the bill increase in full, but the BBC understands it is expected to agree to a bill increase of at least half the amount the companies are asking for, and in some cases significantly more than half.
Mike Keil, executive director of CCW, said the bill increase “will come as a big surprise to people.”
“People do want to see improvements, they understand that it requires investment, but I think the scale of what is being proposed here will be a real shock and that’s why the water companies have redoubled their efforts to explain what people are getting for their money,” he said. .
How much do companies want to increase their accounts?
- Southern Water – 91% increase to £915 a year by 2030
- Thames Water – 59% to £749
- Hafren Dyfredwy – 56% to £676
- Severn Trent – 50% to £657
- Wessex Water – 50% on £822
- Yorkshire Water – 46% to £682
- Dŵr Cymru – 43% to £702
- United Utilities – 38% to £666
- South East Water – 35% £330
- Portsmouth Water – 31% to £157
- Anglian Water – 29% to £682
- Northumbrian Water and Essex & Suffolk Water – 26% on £530
- Affinity Water 25% on £294
- South Staffs & Cambridge Water – 24% to £221
Source: Water Consumer Council
Estimate is for average accounts. Costs will vary depending on the appraised value of the property
The latest CCW figures include changes by companies, regulator Ofwat and other bodies including the Environment Agency since their five-year plans for 2025-2030. first submitted last October.
The proposed increases include a projected inflation rate of 2%, which is in line with the Bank of England’s target.
There is a very wide range of proposed bill increases, reflecting the very different challenges faced by businesses in different parts of England and Wales.
The very high figure on Southern reflects major upgrades to a water infrastructure that has had serious problems.
Katy Taylor, Southern Water’s chief customer officer, said the company shared “everyone’s concern about rising payments” but added “the water needs in our water-scarce region present a unique set of challenges that require significant investment”.
She said money from the higher bills would be used to “reduce the use of spillways during storms, preserve water supplies for a rapidly growing population and protect the environment.”
Southern Water is owned by Australian company Macquarie, which has come under fire for its time as Thames Water’s largest shareholder.
In five of the 10 years it owned Thames, the company paid out more dividends than it made profits, while debt rose from £2.5bn to more than £10bn over the same period.
Macquarie points out that it recently injected £500m of extra cash into Southern Water.
Water UK, which represents suppliers, said bill rises were “never welcome” and added that water companies were “massively increasing the level of financial support they offer to customers struggling to pay their bills”.
“Ofwat is currently scrutinizing these plans and will only allow investment that is new, necessary and value for money. It will not allow water companies to spend money on anything they have already received funding for,” the industry body said.
Ofwat will publish a preliminary report on the bill rises it expects to approve on June 12, with figures to be finalized in December.
Water services are publicly owned in Northern Ireland and Scotland.
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