The Competition and Markets Authority (CMA) has provisionally allowed five water companies in England to increase bills by an additional £556 million over the next five years, adding an average of 3% to customer charges. The decision affects Anglian, Northumbrian, Southern, Wessex, and South East Water, which together serve 14.7 million households.
The companies had appealed to the CMA in February for permission to raise bills by a total of £2.7 billion, arguing they needed more funds to meet environmental standards. However, the CMA’s independent expert panel granted only 21% of that amount, saying the companies’ requests were largely unjustified. The increases come on top of a previously allowed 24% rise from regulator Ofwat.
Water Minister Emma Hardy acknowledged public anger over bill rises, stating: “I understand the public’s anger… that’s why I expect every water company to offer proper support to anyone struggling to pay. We’ve made sure that investment cash goes into infrastructure upgrades, not bonuses, and we’re creating a tough new regulator to clean up our waterways.”
The approved increases vary by company. Anglian Water sought a 10% rise to £649 but got 1% to £599; Southern Water wanted 15% to £710 but was allowed 3% to £638. Wessex Water received the largest proportional increase at 5% to £622. The panel allowed higher returns for investors to reflect sustained high interest rates.
Consumer groups criticised the decision. Mike Keil, chief executive of the Consumer Council for Water, said further increases were “very unwelcome” and questioned whether higher investor returns were justified. Environmental groups also expressed concern, with James Wallace of the campaign group River Action noting that shareholders continue to receive dividends while sewage pollution persists.
