Ofwat has provisionally allowed five of England and Wales's 13 water suppliers to increase customer bills, unlocking an extra £3.4 billion in spending. The decision means millions of households face unexpected price hikes, according to the Mirror.
Burnham: 'Customers cannot be treated as a blank cheque'
Prime Minister Andy Burnham strongly condemned the move, warning that long-suffering billpayers "cannot be treated as a blank cheque" to fund operational failures. "I understand why people are angry," he said. "I am too. The truth is customers have been asked to pay more for years, yet serious pollution incidents are at record levels and the pipes are still leaking."
Burnham added: "None of which is the billpayer's fault, who should not be treated as a bottomless source of funding for other people's failures. Customers cannot be treated as a blank cheque. Where water companies seek to pass unnecessary costs on to households, they will be challenged."
Thames Water among firms permitted to raise charges
The former Mayor of Greater Manchester said: "Our water industry has clearly not been working for people for far too long. That's why this Government will be looking at how we can give the public more control and help keep bills as low as possible."
Britain's biggest water supplier, Thames Water, which has around 16 million customers, is one of the firms provisionally permitted to hike bills between 2027 and 2030. This is despite being on the brink of collapse after sinking under a more than £20 billion debt mountain, with creditors looking to secure a rescue deal to stave off temporary nationalisation by the Government.
CCW: 'Every pound must be necessary'
Severn Trent Water, Southern Water, Wessex Water and South East Water make up the four other suppliers put forward for the move. The water sector has already come under fire over rising bills at a time of poor performance for sewage spills, water quality and supply failures.
The Consumer Council for Water (CCW), which represents customers, said Ofwat needs to show "every pound of this additional £3.4 billion is necessary". Steve Hobbs, senior policy lead at the CCW, said: "Customers want investment that delivers cleaner rivers, more reliable water supplies and infrastructure fit for the future. But that ambition must be balanced against the fact many households are already really struggling with higher water bills and wider cost-of-living pressures."
Hobbs added: "Trust in water companies has never been lower and customers need to see their money is being well spent."
A spokesman for Water UK, which represents suppliers, said: "This summer's drought has shown exactly why new investment is so vital. This expenditure will help to safeguard services, unlock new homes and business growth, and replace ageing infrastructure."
The spokesman added: "For most customers there will be no immediate impact on bills. Where bills will rise, we recognise any increase is difficult and help is available for anyone struggling to pay."
