Getty ImagesWater bills in England and Wales will rise by an average of £19 a year until 2030, industry regulator Ofwat has said.
Although this would put more pressure on households, it would be a third less than the amount requested by the water company.
The bill increase is intended to fund investments in improvements such as replacing leaky pipes and reducing sewage discharges into rivers and oceans.
It comes as suppliers face increased scrutiny of their environmental and financial performance in the past year, as well as anger over executive pay.
Bill increases vary by region, with Thames Water customers seeing an increase of £99 or 23% over the nest five years, Anglian customers seeing £66 or 13%, and Southern Water customers facing £183, a 44% increase.
The proposed bill increase could be challenged by the water company, with the final determination due at the end of the year with the increase taking effect from April.
Industry group Water UK said the proposed plan was the “biggest cut of investment ever.”
“As a direct result, more homes will be blocked, river recovery will be slower and we will fail to address the water shortages we know are coming,” the spokesperson said.
Labor has promised a crackdown on the industry, promising consumers more compensation for waste waste and the power to hold the executive to account.
The new Secretary of State for Food Environment and Rural Affairs, Steve Reed, met with water company leaders on Thursday to discuss performance issues and ways to improve.
Total average bill proposed in 2029-30:
Water and sewage companies:
- Anglian water: £557 – up 13% from current price
- Name Cymru: £603 – up 29%
- Hafren Dyfrdwy: £524 – up 32%
- Northumbrian Water: £460 – up 11%
- Severn Trent Water: £496 – up 23%
- Southern Waters: £603 – up 44%
- Southern Waters: £561 – up 13%
- Thames Water: £535 – up 23%
- United Utilities: £536 – up 21%
- Wessex Water: £497 – 2% down
- Yorkshire Water: £537 – up 25%
Water companies only:
- Water affinity: £203 – up 6%
- Portsmouth Water: £135 – up 18%
- Southern Waters: £248 – up 8%
- Southern Waters: £183 – up 14%
- Water SES: £187 – 15% off
Ofwat chief executive David Black said the plans marked the “biggest ever” investment in the water sector and meant “a continued focus on customer service and the environment at the same price for customers.”
He told Radio 4’s Today Program that he was “deeply concerned” about the level of bonuses the company was paying.
“That’s why we’ve introduced new measures to protect our customers. In the past year, no customer has paid an executive bonus.”
The Consumer Council for Water, a government-funded body, estimates that “around two million households in England and Wales are currently unable to pay their water bills”.
He said the increase in help for struggling households was “welcome” but “less than what is needed”.
“Customers know that investment is urgently needed, but they need assurance that every pound of money will be put to good use,” said chief executive Mike Keil, adding that “confidence in water companies has never wavered”.
The UK’s biggest water company, Thames Water, is under scrutiny by Ofwat, with a new “supervision regime” to ensure the company improves its performance.
Ofwat said Thames Water must provide a “delivery action plan” and report regularly on progress, assessed by a third party.
The regulator said it is considering appointing an independent monitor to report on the company’s progress.
Thames Water is at risk of a downgrade in its credit rating from S&P Global, the ratings agency said on Friday.
The government plans to introduce new measures to ensure that money earmarked for investment and improvements ringfenced and cannot be diverted to pay salaries or dividends.
The customer panel will have the power to arrest directors and executives, but compensation for customers for failing to meet the required standards could more than double.
The breach comes as consumer anger rises over pollution, but also as some companies – including heavily indebted Thames Water – ask for leniency due to financial problems.
‘High pollution levels’
Dave Wallace is a citizen scientist who has been testing the water in the River Thames where he lives in Henley.
“We started last year with tests after some kids got sick,” he said.
“I have also been swimming and found myself swimming in what I described as solid matter and began to wonder what on earth was going on.
“We have found high levels of pollution and found very high levels of ecoli in the river.
“I’ve stopped swimming because we know people get sick from entering the river.”
He said there were reports of an increase in sickness and diarrhea as well as people getting sick and suffering from sepsis.
“Not only people, but also dogs, there are many reports of dogs getting sick from entering the water,” he said.
