Households set to learn water bills to rise by at least 20% over next five years
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Households in England and Wales are set to learn their water bills will rise by at least 20% by 2030 to fix the “twin crisis” of pollution and shortages. Ofwat is expected to announce on Thursday that charges will increase by more than 20% over the next five years, which means an average rise of £20 a year per household and the average bill soaring from £448 a year to £542.
Ofwat’s draft decisions released in July allowed water companies to increase bills by an average of 21%, before inflation is added, over the next five years to help fund £88 billion of investment in improving services and the environment. The proposed bill rises would begin to take effect from April next year.
However figures released by Ofwat in October revealed water companies had subsequently asked to increase bills by even more than they originally requested. The latest requests by firms would see the average consumer bill in England and Wales rise by 40% between now and 2030, costing £615 per year.
Southern Water wants to be allowed to increase bills by 84%, while scandal-hit Thames Water wants Ofwat to approve a 53% hike. An Ofwat spokesman said: “Our intention is to set a balanced package on Thursday that delivers better services for customers and ensures the sector attracts the investment it needs to deliver cleaner rivers and seas.
“We know that many customers continue to struggle with cost-of-living pressures and need extra help at this difficult time. Water companies in England and Wales are planning a significant increase in support for customers struggling to pay. The proportion of customers that receive social tariff support will rise to at least 8% in the 2025-30 period.”.
