Millions of households are facing larger increases in their water bills as five companies have been granted permission to raise prices by more than initially planned. The companies involved 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, averaging £157 per household, to fund upgrades and reduce sewage discharges. Following an appeal by the firms in March, the Competition and Markets Authority (CMA) conducted an investigation.
The CMA’s decision allows Anglian and Northumbrian to increase bills by an additional 1% compared to the initial plan, Southern by 3%, South East by 4%, and Wessex by 5%. These companies collectively serve seven million UK households.
Consumer groups have raised concerns about the impact of the recent bill increases in April, where the average water bill surged by around £123 annually. Kirstin Baker, leading the independent group of experts appointed by the CMA to review pricing controls, stated that the requested bill increments by water companies were largely unjustified.
Mike Keil, Chief Executive of the Consumer Council for Water (CCW), expressed worry that further increases might burden customers without significant improvements in services. Water Minister Emma Hardy emphasized the need for water companies to provide support to customers struggling to pay their bills.
While households cannot switch water providers, there are still ways to save money on water bills, such as reducing water usage and considering installing a water meter. Martin Lewis recommends using a water meter calculator to determine potential savings. Additionally, Save Water Save Money offers free water-saving devices like shower heads and tap inserts to help regulate water consumption.