WATER SHOCK
Millions of households to be hit with water bill rises of £31 a year as firms hike rates by 36%
See how much you face paying below
MILLIONS of water customers are set to see their bills increase by 36% by 2030, the regulator has confirmed.
Ofwat has announced that bills in England and Wales will rise by an average of £31 per year over the next five years.
The increase is significantly higher than the expected average rise of around £20 a year per household, outlined in the regulator’s draft proposals in July.
Ofwat said the increase would pay for a £104 billion upgrade of the water sector to deliver "substantial, lasting, improvements for customers and the environment".
Despite the average annual increase of £31, households will face a significant hike of £86 or 20% in the next year alone, excluding inflation, followed by smaller percentage increases in each of the subsequent four years.
Currently, the average water bill stands at £448 per year and is expected to rise to £479 next spring.
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Overall, the average bill will increase by a total of £157 or 36% over the next five years.
Some firms have been allowed significantly higher increases.
Southern Water customers will face a 53% increase and Severn Trent households will see their bills rise by 47%, before inflation.
DWr Cymru and Hafren Dyfrdwy have both been allowed to charge 42% more, while Yorkshire Water bills will rise by 41%.
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Thames Water is to be allowed to hike consumer bills by 35%, as the regulator also handed it an £18.2 million fine for paying “unjustified” dividends to shareholders.
David Black, Ofwat chief executive, said today marks a "significant day" for water companies.
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He added: "Water companies now need to rise to this challenge, customers will rightly expect them to show they can deliver significant improvement over time to justify the increase in bills."
He added that the regulator would "hold companies to account" for their investment programmes and improvements.
Ofwat warned in July that bills would increase by an average of £19 a year between 2025 and 2030.
The regulator said this rise was a third less than the increase requested by water companies, which had proposed an average increase of £144 over the next five years.
Mike Keil, chief executive of the Consumer Council for Water (CCW), said these bill rises may be less than what water companies wanted but they are still more than "what many people can afford".
He said: "Customers will be hit particularly hard from April with a large chunk of these increases frontloaded into next year - on top of inflation."
Water firms do offer support to customers who struggle to pay, but how much support they receive varies from region to region.
Today's hikes come as part of Ofwat's 2024 Price Review (PR24), which covers the period from April 1, 2025, to March 31, 2030.
It sets limits on what companies can charge their customers for water to cover the cost of repairs to the network.
Here's a full list of water and sewerage company price hikes for customers over the next few years below:
- Anglian Water - £631 up 29%
- Dŵr Cymru - £645 up 42%
- Hafren Dyfrdwy - £557 up 42%
- Northumbrian Water - £510 up 21%
- Severn Trent Water - £583 up 47%
- Southern Water - £642 up 53%
- South West Water - £610 up 23%
- Thames Water - £588 up 35%
- United Utilities - £585 up 32%
- Wessex Water - £614 up 21%
- Yorkshire Water - £607 up 41%
And for water-only companies:
- Affinity Water: £241 up £49
- Portsmouth Water: £152 up £41
- South East Water: £287 up £55
- South Staffs Water: £195 up £34
- SES Water: £215 down £6
Mandatory water compensation is increasing
MILLIONS of water customers are set to benefit from huge hikes to compensation levels for the first time since 2000.
New regulations from the Department for Environment, Food and Rural Affairs (Defra) have forced water companies to provide higher, compulsory compensation to both customers and businesses.
- Low water pressure: Payments could reach £250, a tenfold increase from the current £25.
- Internal sewer flooding: Compensation could exceed £2,000, compared to the current maximum of £1,000.
- Supply interruptions: Households could receive £150 and businesses £300, as exemplified by a recent incident in South Staffordshire.
- "Do Not Drink" notices: A compulsory payment of £220 for households and £440 for businesses would be triggered, unlike the voluntary £30 offered by Thames Water to residents in Bramley, Sussex, earlier this year.
- Water quality incidents: Customers affected by incidents like the cryptosporidium outbreak in Brixham, Devon, could receive at least £10 per 24 hours, potentially totalling over £500 for extended events.
COMPENSATION ALREADY DUE
It comes as water companies face criticism over record levels of sewage discharged into rivers and seas despite huge profits.
At the beginning 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' 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 on December 19 and applied to bills from April 2025.
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.
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Performance penalties have totalled more than £430million since 2020.
Last year, Ofwat forced through bill reductions worth £177.6million.
On Thursday (December 19), Ofwat will confirm how much water companies are allowed to hike bills over the next five years.
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 accounts 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.
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