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 in question are Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water, who argued that the original price hikes set by water regulator Ofwat were insufficient.
In December, Ofwat announced that water companies could raise bills by 36% over the next five years, amounting to an average increase of £157, to fund upgrades and reduce sewage discharges. Following an appeal by the firms in March, the Competition and Markets Authority (CMA) conducted an investigation.
Today, the CMA has approved additional increases for Anglian and Northumbrian by 1%, Southern by 3%, South East by 4%, and Wessex by 5% from the previously announced amounts. These companies collectively cater to seven million households in the UK. The requested bill increases aimed to generate an extra £2.7 billion in revenue, but the CMA only approved 21% of this, translating to an additional £556 million in revenue.
Consumer groups have raised concerns about the financial burden on households, especially following the steep bill rises in April, with the average water bill surging by about £123 annually. The independent group of experts appointed by the CMA to review the price controls emphasized that the requested bill increases by water companies were largely unjustified.
Water minister Emma Hardy acknowledged the public’s frustrations over bill hikes and urged water companies to provide adequate support to those struggling to pay. She highlighted the government’s focus on investing in infrastructure upgrades and creating a robust regulatory framework to enhance trust in the system.
Although consumers cannot switch water providers, there are ways to save money on water bills, such as reducing water usage through simple measures like shortening shower times and fixing leaks. Installing a water meter and utilizing free water-saving devices can also contribute to cost savings for households. Expert advice from Martin Lewis and tools like the CCW water meter calculator can help consumers assess their potential savings.