Water bills set for steep price hike after Ofwat review – how much will yours rise by?

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Average water bills in England and Wales will increase by 36 per cent over the next five years, water regulator Ofwat has said. This will mean an extra cost of around £31 a year for households on average – although it will greatly vary by provider.

The increase is significantly higher than the expected average rise of around 21 per cent, 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”.

And while the £31 a year increase figure is the average, next years’ hike threatens to be much more substantial. Household will face an average increase of £86 in 2025, with smaller increases coming over the following four years.

Southern Water customers will experience the biggest bill rise of all 11 water and wastewater companies, a 53 per cent hike. The company had sought an increase of 83 per cent.

Wessex Water customers will see the lowest increase with a 21 per cent bill rise. Meanwhile, around 16 million Thames Water customers will see an increase of 35 per cent.

Ofwat chief executive David Black said: “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.”

Increases by water company:

Water-only companies: