Water bills to rise £94 on average over next five years

Household water bills are to rise by an average of £94 over the next five years under proposals announced by the regulator Ofwat. Ofwat said the average rise was 21 per cent, or around £19 per year.

- CHRIS STEVENSON & ARCHIE MITCHELL

However, the increases vary by region, with Southern Water’s rising by £183, an increase of 44 per cent. Thames customers will see an increase of £99 or 23 per cent, and Anglian £66 or 13 per cent.

The regulator said water firms proposed increases averaging £144 over five years. For example, Thames Water’s proposed increase of £191 by 2030 has been reduced to £99, while Severn Trent’s proposed rise of £144 has been cut to £93.

The proposed bill increases come amid public fury around firms’ rampant polluting of waterways with sewage spills as they continue to hand dividends to shareholders, and bonuses to executives – something which Labour has pledged to clamp down on. Sewage spills into England’s rivers and seas more than doubled in 2023.

The environment secretary, Steve Reed, met yesterday with the bosses of 16 water firms to outline reforms aimed at ending the crisis in the sector. The firms all signed up to a package put forward by Mr Reed, including the government ensuring funding for investment in infrastructure is ringfenced so that it is only spent on upgrades that benefit customers and the environment.

Water companies will also be forced to amend their articles of association to place customers and the environment at the heart of their objectives. Mr Reed will also instruct Ofwat to give consumers more power, setting up “customer panels” through which they can summon water bosses to answer questions. And the government will more than double the amount of compensation those whose services are interrupted are eligible for.