Southern Water has requested the highest increase in bills among the utility companies of 73% to £727 a year, while Thames Water has asked for a 44 per cent rise to £627
Customers in England and Wales are bracing themselves for a potential hike in their water bills over the next five years, as they await to hear what companies will do to enhance their services in return.
Ofwat, the water services regulator, is set to release its ‘draft determinations’ this Thursday. This crucial step involves approving firms’ requests for bill increases based on their proposed spending plans, with a final decision expected by year’s end.
Southern Water has put forward the steepest request among utility companies, seeking a 73% increase in bills to £727 annually. Wessex Water isn’t far behind, asking for a 36% rise to £690 per annum.
Thames Water, serving 16 million customers across London and the Thames Valley region, unveiled plans in April that would see expenditure rise to £19.8billion as it aims to use the money to upgrade infrastructure and curb sewage spills.
However, this plan also will see customer bills rising by by 44% to £627 – a proposal that has sparked outrage among consumer groups. The proposed bill increases come amid public fury around firms’ rampant polluting of waterways with sewage spills as they continue to hand dividends to shareholders, and bonuses to executives – something which Labour has pledged to clamp down on.
Sewage spills into England’s rivers and seas more than doubled in 2023. The Environment Agency reported 3.6 million hours of spills last year equivalent to about 400 years a significant jump from 1.75 million hours in 2022. In England, not a single river is rated as being in overall good health, with spots like Windermere in the Lake District suffering from sewage spills.
Outraged campaigners argue that private water companies have doled out billions to shareholders and executives at the expense of adequate investment in the country’s water infrastructure although these utilities point to their substantial investments.
The high level of wastage through leaks raises significant concern, particularly during dry spells when consumers face hosepipe restrictions. Recent research conducted by the University of Greenwich indicates that roughly £85.2bn have been withdrawn by investors from 10 water and sewerage firms in England and Wales since the privatisation of the sector more than three decades ago.
In recent developments, England’s three largest listed water companies – Severn Trent, South West Water, and United Utilities – all announced increased dividends this year compared to last year. Regulations introduced just last year require water companies to demonstrate acceptable service levels for customers and environmental compliance before disbursing dividends.
Mike Keil, Chief Executive of Consumer Council for Water, emphasised in May that customers will not accept future rate increases “unless they see and feel a step change in the service they receive from their water company whether that’s having the confidence to swim at their local beach or experiencing a more reliable water supply.”
“If customers are going to be asked to pay considerably more, they have a right to expect far more in return.”
