Water Bills to Rise by an Average £86 in 2025
The typical water bill will rise by an average of £86 from April for a year before easing, the industry regulator has said. The steep rise is part of bill increases in England and Wales over the next five years to pay for supply upgrades and to reduce sewage discharges, Ofwat said.
The cost increases are higher than the regulator had proposed in July, but are lower than water companies had requested.
Water UK, the trade body for water firms, said the price increases would provide “much needed” investment for the sector.
The BBC is reporting that over the next five years, the average rise in bills will be £31 a year, but Ofwat said firms are expected to hike tariffs more in the first year. However, the rises don’t include inflation, which means actual bills are likely to be higher.
Those rises are for water and wastewater firms. Water-only companies will raise bills by 22% to £234, Ofwat said.
The water industry has faced fierce criticism in recent years over leaks and sewage being pumped into rivers. Some firms, including the UK’s largest supplier Thames Water, have financial problems, but there are also concerns some households will struggle to pay.
Ofwat chief executive David Black said the investment would significantly cut sewage spills, reduce leaks and ensure customers get a better service.
Some £104bn can be spent on upgrading water systems, which will mean “cleaner rivers and seas and secure long-term drinking water supplies for customers”, he said.
Bill hikes vary by region. Southern Water customers will be hit by the biggest increase, with bills going up 53% – to £642 on average – by 2030.
The news comes as supplies to more than 58,000 Southern Water customers are currently disrupted.
Wessex and Northumbrian Water bills will rise by the smallest amount, 21%.
Thames Water, which is struggling under a huge debt pile, will be able to charge customers 35% more, with annual bills going up to £588 in five years.
Bill rises are set by Ofwat for a five-year period, but firms can appeal against the decision by going to the Competition and Markets Authority.
Thames Water, which had asked to be allowed to put bills up by 53% to £667, said it was looking at the Ofwat decision.
Bills vary by region depending on how available water is, and whether people live in towns or the countryside, according to water industry dashboard Discover Water, external.
The bill rises do not apply to households in Scotland and Northern Ireland, where the water industry is nationalised.
The Consumer Council for Water, which helps resolve customer complaints, said the bill rises were “more than many people can afford” with at least two in five households in England and Wales struggling to pay
Social tariffs, which give a discount on bills, are available but who actually gets financial help is “a roulette” because each company sets its own criteria for who qualifies, its chief executive Mike Keil said.
Citizens Advice warned that water bill increases could push people further into debt unless struggling households get more support.
Angela Newey, chief executive of Citizens Advice in north and west Kent, said “water is generally an issue” for people who are struggling, and “it’s very often the first bill they won’t pay”.