Water bills to increase by 36% in the next five years, Ofwat reveals

Protesters gathered outside the High Court today in protest over the Thames Water bailout (Picture: EPA/Shutterstock)

Water companies have been given a green light to increase bills by more than a third in a move that has already branded a ‘bloody disgrace’.

With Christmas just days away, this will be seen as a dagger in the heart of the public.

It is estimated that household water bills in England and Wales will rise by an average £31 a year over the next five years – significantly higher than the expected average of around £20 a year per household.

The anger comes after Thames Water said it will go bust by March if it does not get an emergency £3billion loan.

This would cost the average person £250 more a year, according to figures from campaign group We Own It.

What does the water bills rise mean for you?

This means that the average bill will rise by a total of £157 or 36%, on top of inflation, by 2030.

Water companies had campaigned for an increase of 40%, so this is even slightly under.

It comes as some 60,000 homes across Hampshire are without water due to a ‘technical issue’ at a Southern Water supply works.

Regulator Ofwat said the extra money would pay for a £104 billion upgrade of the sector to deliver ‘substantial, lasting, improvements for customers and the environment’.

Many companies are under pressure for polluting waterways, through not investing in correct infrastructure.

What have regulator Ofwat said about the water bills rise?

But chief executive David Black stressed that the 36% rise provides firms with ‘an opportunity to regain customers’ trust’ by using the cash to turn around their environmental record and improve services.

He added: ‘Water companies now need to rise to this challenge, customers will rightly expect them to show they can deliver significant improvement over time to justify the increase in bills.

Average bills per water company (Picture: Ofwat)

‘Alongside the step up in investment, we need to see a transformation in companies’ culture and performance. We will monitor and hold companies to account on their investment programmes and improvements.

‘We recognise it is a difficult time for many, and we are acutely aware of the impact that bill increases will have for some customers. That is why it is vital that companies are stepping up their support for customers who struggle to pay.

‘We have robustly examined all funding requests to make sure they provide value for money and deliver real improvements, while ensuring the sector can attract the levels of investment it needs to meet environmental requirements.

‘This has seen us remove £8bn of unjustified costs compared with companies most recent requests. In addition, our approach to setting a rate of return has saved customers £2.8 billion.’

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