Millions of households are set to experience higher water bills than previously anticipated due to complaints from five companies to the competitions watchdog. Ofwat had initially approved a £157 average increase in bills over a five-year period from 2025 to 2030 for 16 water companies. However, Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water argued that this adjustment would hinder their ability to meet regulatory standards.
In response to the companies’ concerns, the Competitions and Markets Authority (CMA) reviewed the situation. The firms requested an additional £2.7 billion in revenue but were granted an extra £463 million following the independent group’s assessment. This decision is expected to lead to an average 2.2% rise in customers’ bills, on top of the previously allowed 24% increase, though less than the provisional 3% hike granted in October.
Each water supplier will see varying bill increases. South East Water’s bills can go up by an extra 4% to £284 annually. Meanwhile, Southern Water and Wessex Water will raise bills by 3% to £641 and £614 per year respectively. Anglian Water will also see a 2% increase to £602 annually, while Northumbrian Water will maintain their current rates. Together, these companies serve around 14 million individuals.
The CMA aimed to strike a balance between minimizing the impact on households and ensuring sufficient funding for the suppliers. However, a water consumer advocacy group expressed concerns that the additional increases may still be unaffordable for many customers. This comes as water companies face growing criticism for escalating bills alongside issues like leakages and untreated sewage entering water bodies.
Consumer Council for Water’s CEO, Mike Keil, highlighted the financial strain on households and called for reforms in the appeal process to empower customers to challenge price hikes. The independent group’s chair, Kirstin Baker, emphasized the need to manage affordability concerns while securing water supplies and reducing pollution.
While customers cannot switch water providers, there are ways to save money by conserving water. Simple actions like reducing shower time by a minute or turning off taps when not in use can contribute to savings. Additionally, exploring free water-saving devices through programs like Save Water Save Money can help lower consumption. Consider installing a water meter, as suggested by financial expert Martin Lewis, especially if your house has more bedrooms than occupants.