Firms and Ofwat accused as average water bill to rise by 36% over five years

Water bills in England and Wales will rise by an average of 36% over the next five years, as suppliers are accused of forcing struggling households to pay for years of underinvestment to fix leaky pipes and reduce pollution.

- Jasper Jolly, Anna Isaac, Helena Horton

The industry regulator Ofwat said yesterday that from next April it would allow companies to raise bills by an average of £31 each year, or £157 in total over the next five years, to an average of £597 by 2030, to help pay for investment. That represents a 36% increase before inflation, which will be added on top.

The bill increases are frontloaded during the five years, meaning households will pay an average of £86 more next year, with smaller increases over the following years.

Consumer groups and politicians have put pressure on the regulator to limit the increase in bills, amid widespread criticism of the industry over leaky infrastructure and the release of sewage into seas and rivers.

Charles Watson, the chair and founder of the campaign organisation River Action UK, said: "It is a travesty that customers are now being forced to pay higher water bills, especially when these increases are directly the result of years of underinvestment by the water industry."

MPs on the environment committee yesterday announced an inquiry to start in January to look into the industry's finances, environmental performance and large payouts to shareholders and executives.