MILLIONS of water customers could see their bills rise by up to 84% as major firms call for bumper hikes.
According to figures released by the watchdog Ofwat on Tuesday, water companies have requested even higher consumer bill increases than initially proposed.
The Sun was first to reveal the news on Friday.
The latest requests by water firms would see the average consumer bill in England and Wales rise by 40% between now and 2030, costing £615 per year.
Earlier this year, companies asked Ofwat for bills averaging £585 by 2030, an increase of about one-third from the current average of £439.
This summer, the regulator pared back those requests to an average of £535, in its draft price review in July.
But now, after a consultation period, 10 of the 11 water companies have hit back with even higher requests than before.
The biggest proposed rise is by Southern Water, which would see bills for its customers in Sussex, Kent and Hampshire rise by 84% between now and 2030.
Thames Water, the UK’s biggest provider, which is in emergency talks over a £15 billion debt pile and a worsening financial situation, has asked for a 53% rise.
The next biggest hikes are by Severn Trent Water, of 46% to £580, and north Wales provider Hafren Dyfrdwy, of 45% to £568.
Only one company, Wessex Water, is not demanding higher bills than first requested.
Many argue that they need to spend more on upgrading their pipes, sewers, and reservoirs than originally planned, and therefore, they need bills to go up, too.
Ofwat wrote in an update on Tuesday that this was “mostly to meet the requirements of other regulators like the Environment Agency and Drinking Water Inspectorate”.
However, some of the increases are designed to meet “changes to the proposed rate of return for investors”.
Ofwat is due to make a final decision on bills increases on December 19, with companies going to the negotiating table with regulators before then.
The regulator said: “We will consider this additional expenditure request as part of our final determinations.”
How much is your water company proposing to hike bills?
Here’s how water and wastewater companies are planning to hike bills by 2029-30:
- Anglian Water: £614 (up from £491)
- Dŵr Cymru: £626 (up from £455)
- Hafren Dyfrdwy: £568 (up from £392)
- Northumbrian Water: £415 (up from £501)
- Severn Trent Water: £580 (up from £398)
- Southern Water: £772 (up from £420)
- South West Water: £613 (up from £497)
- Thames Water: £667 (up from £436)
- United Utilities: £584 (up from £442)
- Wessex Water: £658 (up from £508)
- Yorkshire Water: £583 (up from £439)
Here’s how water-only companies are planning to hike bills by 2029-30:
- Affinity Water: £240 (up from £192)
- Portsmouth Water: £143 (up from £111)
- South East Water: £305 (up from £232)
- South Staffs Water: £181 (up from £161)
- SES Water: £238 (up from £221)
The latest string of demands comes amid public and political outcry over sewage spills in the privatised water industry, while companies’ investors receive dividends and top executives get bonuses.
A recent performance report by Ofwat showed there has only been a 2% reduction in pollution since 2019 despite firms committing to cutting it by 30%.
Labour has suggested sweeping new laws that could see bosses face up to two years in jail if they obstruct regulators – but nothing has come into force.
At the begining of October, water companies were ordered to return £157.6million to customers after failing to meet pollution targets.
Each year, Ofwat evaluates the performance of England and Wales’s 17 largest water and wastewater companies against key targets, including sewer flooding, supply interruptions, and water leaks.
For the second consecutive year, no company attained the highest rating, although four companies demonstrated improvement compared to the previous year.
As a result, millions of customers at 13 water companies will see their bills slashed next year as the watchdog issues fresh penalties.
The penalties for each water firm are as follows:
- Thames Water £56.8million
- Anglian Water: £38.1million
- Yorkshire Water: £36million
- Southern Water: £31.9million
- Welsh Water: £24.1million
- South West Water: £17.4million
- South East Water: £8million
- Wessex Water: £5.3million
- Affinity Water: £5.2million
- Bristol Water: £1.9million
- Portsmouth Water: £1.1million
- South Staffs Water: £700,000
- Hafren Dyfrdwy: £200,000
The regulator said that the exact amount that will be returned to customers will be finalised in December and applied to bills from April 2025.
Only four water companies have not faced a penalty from the regulator, meaning customers at the following firms won’t receive a rebate next year.
Instead, the amount they will be allowed to add to bills are as follows:
- United Utilities: £33.2million
- Severn Trent Water: £27.9million
- Northumbrian Water: £7.8million
- SES Water: £200,000
Water companies were set stretching targets for 2020-25 to deliver better outcomes, for both customers and the environment.
Where they fall short on these, the regulator imposes performance penalties resulting in customers being charged less than they would be the following billing year.
Performance penalties have totalled more than £430million since 2020.
Last year, Ofwat forced through bill reductions worth £177.6million.
What water bill support is available?
IT’S always worth checking if you qualify for a discount or extra support to help pay your water bill.
Over two million households who qualify to be on discounted social water tariffs aren’t claiming the savings provided, according to the Consumer Council for Water (CCW).
Only 1.3million households are currently issued with a social water tariff – up 19% from the previous year.
And the average household qualifying for the discounted water rates can slash their bills by £160 a year.
Every water company has a social tariff scheme which can help reduce your bills if you’re on a low income and the CCW is calling on customers to take advantage before bills rise in April.
Who’s eligible for help and the level of support offered varies depending on your water company.
Most suppliers also have a pot of money to dish out to thousands of customers who are under pressure from rising costs – and you don’t have to pay it back.
These grants can be worth hundreds of pounds offering a vital lifeline when faced with daunting water bills.
The exact amount you can get depends on where you live and your supplier, as well as your individual circumstances.
Many billpayers across the country could also get help paying off water debts through a little-known scheme and even get the balance written off.
Companies match the payments eligible customers make against the debt on their account to help clear it sooner.
If you’re on a water meter but find it hard to save water as you have a large family or water-dependent medical condition, you may be able to cap your bills through the WaterSure scheme.
Bills are capped at the average amount for your supplier, so the amount you could save will vary.
The Consumer Council for Water estimates that bills are reduced by £307 on average through the scheme.
