Millions of households are poised to experience larger increases in their water bills as five companies have been granted permission to raise prices by more than previously anticipated. The companies involved are Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water, which contested the initial price hikes set by water regulator Ofwat, arguing they 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) launched an investigation.
The CMA has now approved additional price increases for Anglian Water and Northumbrian by 1% more than initially proposed, Southern by 3%, South East by 4%, and Wessex by 5%. These companies collectively serve seven million UK households. The CMA disclosed that the firms sought to generate an extra £2.7 billion in revenue, but only £556 million of this was approved, representing 21% of the requested amount.
Consumer groups have cautioned that households already faced substantial bill hikes in April, with the average water bill rising by around £123 annually. Kirstin Baker, leading the independent group of experts appointed by the CMA to review price controls, stated that the companies’ requests for significant bill increases beyond those permitted by Ofwat were largely unjustified.
Mike Keil, Chief Executive of the Consumer Council for Water (CCW), expressed concern over the potential burden on customers due to the additional increases. Water minister Emma Hardy emphasized the need for water companies to offer support to customers struggling to pay their bills and highlighted measures to ease the cost of living pressure.
While switching water providers is not an option, households can still save money by conserving water through simple practices such as reducing shower time and fixing leaky taps. Installing a water meter and utilizing free water-saving devices can also lead to savings. Martin Lewis recommends considering a water meter if the number of bedrooms in a house exceeds the number of occupants. Visit the CCW website for a water meter calculator to determine potential savings. Save Water Save Money offers various free water-saving devices, including shower heads and tap inserts.