Water bills to be hiked by 36% in major cost of living blow to UK households
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Water suppliers will hike bills by over 36% over the next five years as Ofwat approves a plan to help "clean rivers and secure long-term drinking water supplies". The regulator confirmed this morning that it would allow water suppliers to increase bills to address the "twin crisis" of pollution and water shortages. The average rise will be around 40%, which is equivalent to an average extra of £31 per year - or an average of £157 over five years, and will be £597 by 2030. The rises are set to come in next year, and the average bill increase will be £86 according to Ofwat.
The increase is bigger than the 21% rise that Ofwat first proposed in July. However, the regulator says the level is "fair" for current and future customers. Alongside the hike, water suppliers will also be "doubling" the proportion of customers that will receive help from their bills from 4% to 9%.
The biggest hike will be seen by customers of Southern Water, who are set for a 53% hike to their bills over the next five years. Currently, Southern Water customers have an average bill of £420 - but in five years time this will have risen to £642. Paying the most every year in five years' time will be Dwr Cymru customers with an average annual bill of £645.
Scandal-hit Thames Water - which is currently in the midst of a major £3billion bailout from creditors - will be hiking bills by 35% from an average of £436 a year to £588 for 16million of its customers. Customers of Wessex Water will have the lowest, 21%, bill rise. The only customers who will see their annual bill drop in 2030 will be from SES Water - a water only company - who will be reducing their bills by 3% over the next five years. This would take the average bill from £221 a year to £215.
