Millions of households are poised to experience larger increases in their water bills as five companies have been granted permission to raise prices beyond the initially proposed amounts. The companies in question – Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water – contended that the initial price hikes set by water regulator Ofwat were insufficient.
In December, Ofwat announced that water companies could implement a 36% increase in bills over the next five years, averaging £157 per household, to fund upgrades and diminish sewage discharges. Following an appeal by the companies in March, the Competition and Markets Authority (CMA) launched an investigation.
The CMA has now approved additional increases beyond the original figures, with Anglian and Northumbrian allowed to raise bills by 1% more, Southern by 3%, South East by 4%, and Wessex by 5%. These companies collectively cater to seven million households in the UK. The CMA disclosed that the firms sought to generate an extra £2.7 billion in revenue, but only £556 million, equating to 21% of the requested amount, was authorized.
Consumer groups have cautioned that households already faced significant bill hikes in April, with the average water bill surging by around £123 annually. Kirstin Baker, who led the independent panel of experts appointed by the CMA to assess the price controls, emphasized the need to keep increases minimal while ensuring funding for essential improvements.
Mike Keil, Chief Executive of the Consumer Council for Water (CCW), expressed concerns over additional bill increases, highlighting missed opportunities to reduce financing costs, which could have led to lower bills. Water minister Emma Hardy acknowledged public frustration over bill rises and called for water companies to offer support to those struggling financially.
While customers cannot switch water providers, there are strategies to save money, such as reducing water usage through simple measures like shorter showers and turning off taps when not in use. Installing a water meter and utilizing free water-saving devices can also help households cut costs. Financial expert Martin Lewis advises on potential savings with a water meter and recommends utilizing tools like the CCW website’s calculator. Save Water Save Money offers various free water-saving devices, including shower heads and tap inserts, to promote efficient water usage.
