Major water suppliers to hike bills by up to £143
Major water suppliers to hike bills by up to £143
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TWO major water suppliers have agreed to hike bills by up to £143. United Utilities and South West Water have confirmed bill increases of 32% and 23%, respectively, over the coming five years. United Utilities, which serves customers in Manchester and Liverpool, and South West Water’s parent company Pennon said they had agreed the bill increases negotiated with regulator Ofwat last year.
The companies had the option of appealing Ofwat’s decision, made in December last year, to the competition regulator, but have chosen not to. Pennon also bought SES Water last year, which serves customers in Surrey, Sussex and Kent, which will reduce bills by 3% over the five-year period.
Ofwat announced in December that bills in England and Wales will rise by an average of £31 per year over the next five years. The increase is significantly higher than the expected average rise of around £20 a year per household, outlined in the regulator’s draft proposals in July.
Ofwat said the increase would pay for a £104 billion upgrade of the water sector to deliver "substantial, lasting, improvements for customers and the environment". Despite the average annual increase of £31, households will face a significant hike of £86 or 20% in the next year alone, excluding inflation, followed by smaller percentage increases in each of the subsequent four years.