Millions of households are set to feel the pinch as water regulator Ofwat has confirmed an average annual bill increase of £19, effective from April 2025. The rise, which amounts to approximately £1.58 per month, will see the typical combined water and sewerage bill in England and Wales climb to £475.
The decision comes as water companies seek to secure funding for a massive £100 billion investment programme—the largest in the sector's history—aimed at overhauling the nation's ageing water infrastructure.
Where Your Money is Going
Ofwat states that the approved funds will be directed towards several critical areas:
- Reducing Sewage Discharges: A significant portion will fund projects designed to minimise the frequency and volume of sewage releases into rivers and coastal waters.
- Infrastructure Resilience: The investment will bolster the network against the increasing challenges posed by climate change and population growth.
- Future-Proofing Supplies: Ensuring a secure and reliable water supply for future generations is a key priority for the funding.
A Regional Picture
It is crucial to note that the £19 figure is an average. The actual amount customers pay will vary significantly depending on their specific water provider and whether they are on a meter. Regional differences mean some households could see changes that are slightly above or below this national average.
This announcement is part of the regulatory price review process that sets limits on how much water companies can charge customers over a five-year period.
Balancing Act: Investment vs. Affordability
David Black, Chief Executive of Ofwat, emphasised the regulator's role in balancing necessary investment with consumer cost. "We have to be very mindful of the impact of bills on customers, particularly at a time when the cost of living is high," he stated.
Ofwat asserts that its final determination has already trimmed nearly £100 off the average bill increase initially requested by water companies, ensuring the final outcome provides value for money while enabling essential environmental and service improvements.
The approved investment is slated to create thousands of new jobs and stimulate economic growth across the country, alongside its primary goal of enhancing the water and sewage system's performance and environmental footprint.
