Millions of households are facing larger increases in their water bills as five companies have been granted permission to raise prices beyond initial announcements. The companies involved are Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water. They argued that the original price hikes set by water regulator Ofwat were insufficient.
In December, Ofwat stated that water companies could raise bills by 36% over the next five years to fund upgrades and reduce sewage discharges. However, following an appeal by the firms in March, the Competition and Markets Authority (CMA) conducted an investigation.
The CMA has now approved additional increases for Anglian and Northumbrian by 1%, Southern by 3%, South East by 4%, and Wessex by 5% compared to the initial figures. These companies collectively cater to seven million households in the UK.
Consumer groups have raised concerns about the impact on households, particularly after a significant rise in water bills in April this year. The CMA’s decision to allow only a portion of the requested revenue increase has been met with mixed reactions.
Consumer Council for Water (CCW) Chief Executive Mike Keil highlighted that further bill hikes would be unwelcome for customers, especially after the recent substantial increases. He expressed concerns that customers might end up paying more without seeing tangible improvements in services.
Water minister Emma Hardy emphasized the government’s commitment to supporting households struggling with rising costs. Efforts are being made to ensure that investments benefit infrastructure upgrades rather than bonuses, along with the establishment of a new regulator to enhance trust in the water system.
While switching water providers is not possible, there are ways to save money on water bills, such as reducing water usage and installing water-saving devices. Renowned financial expert Martin Lewis suggests assessing the benefits of a water meter based on household size. Additionally, households can access free water-saving devices through initiatives like Save Water Save Money.