Millions of households in England face higher water bills after the Competition and Markets Authority (CMA) provisionally allowed five water companies to increase charges by an extra £556 million over the next five years. This represents just 21% of the £2.7 billion the companies had requested.
The five suppliers – Anglian, Northumbrian, Southern, Wessex and South East Water – serve 14.7 million customers. On average, bills will rise by an additional 3%, on top of the 24% increase previously approved by the industry regulator Ofwat. The companies appealed to the CMA in February, arguing they needed more money to meet environmental standards.
The decision has sparked controversy amid public anger over sewage leaks and rising costs. Water Minister Emma Hardy said: “I understand the public’s anger over bill rises – that’s why I expect every water company to offer proper support to anyone struggling to pay.” She added that the government is creating a “tough new regulator” to clean up waterways.
Under the provisional ruling, Anglian Water was granted a 1% increase to £599, far below its requested 10% rise to £649. Northumbrian Water also received a 1% rise to £495, versus its 6% request. South East Water was allowed a 4% increase to £286, Southern Water 3% to £638, and Wessex Water 5% to £622 – the largest proportional increase.
Kirstin Baker, chair of the CMA panel, said: “We’ve found that water companies’ requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified.” The panel did allow higher returns for investors to reflect sustained high interest rates. Consumer groups and environmental campaigners criticised the decision, warning customers may pay more without seeing improvements.
