Water bills to rise 'by up to 84%' in major cost of living blow for households
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Households could see their water bills increase by at least 20% over the next five years as Ofwat is set to publish its decision on the increases tomorrow. The regulator will confirm tomorrow whether it will allow water suppliers to increase bills to fix the "twin crisis" of pollution and water shortages. According to reports from PA, Ofwat will grant suppliers permission to increase bills by more than 20% over the course of five years. This will be an increase of £20 a year per household, which would take to average bill from £448 a year to £542. The proposed bill rises will begin to take effect in April of next year.
Ofwat's draft decision - which was released in July - allowed water companies to increase bills by an average of 21% before inflation is added over the next five years. The increase to bills would help fund £88billion of investment in improving services and the environment.
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 made 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 to approve a 53% hike. PA reports that Thames Water would get "particular" attention as the company is in the midst of a major £3billion bailout from creditors.
Currently, the supplier - which serves about 16 million people - is in the grip of a funding crisis and only has enough cash to continue operating until March. Thames Water has £16 billion worth of debt, which will rise even further if the rescue deal is approved by a court in February. Even with this, huge increases in bills would be needed to make it happen.
