Millions of households are set to experience higher water bills than initially approved due to complaints from five companies to the competitions watchdog. Ofwat had previously permitted 16 water companies to raise bills by an average of £157 over a five-year span starting from 2025. However, Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water contested this decision, citing it would hinder them from meeting regulatory obligations.
Following the companies’ appeal to the Competitions and Markets Authority (CMA) to increase revenue by £2.7 billion, an independent review resulted in an additional allowance of £463 million. This adjustment is expected to lead to an average 2.2% increase in customer bills. Notably, South East Water will see a 4% rise to £284 annually, while Southern Water and Wessex Water will increase bills by 3% to £641 and £614 per year, respectively. Anglian Water will raise customer bills by an extra 2% to £602 annually, whereas Northumbrian Water will maintain current rates. These companies collectively serve around 14 million individuals.
Although the CMA aimed to balance customer impact with supplier funding needs, a public body representing water consumers expressed concerns over the affordability of the bill increases. Water companies are facing growing criticism for escalating bills alongside ongoing issues of leakages and untreated sewage disposal.
While the CMA granted lesser bill increases than requested by the water companies, the Consumer Council for Water highlighted that the adjustments may still be challenging for many customers. The call for reform in the appeal process to empower customers to challenge price hikes was emphasized to address the existing power disparity between water companies and consumers.
Chair of the independent group, Kirstin Baker, explained the rationale behind the adjustments, emphasizing the need to balance affordability and sustainability in water supply management. The revised bill increases reflect market shifts since Ofwat’s initial decision.
To mitigate rising costs, consumers are encouraged to adopt water-saving practices such as reducing shower time and fixing leaky taps. Free water-saving devices are available through platforms like Save Water Save Money, offering tools like water flow-regulating shower heads and tap inserts. Additionally, installing a water meter could lead to potential savings, especially for households with more bedrooms than occupants.
By making mindful choices and utilizing available resources, consumers can manage their water usage effectively and potentially reduce their overall bills.