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Household Bills

Warning that water bills could rise 40% next year

Emma Lunn
Written By:
Emma Lunn
Posted:
Updated:
28/06/2023

Households have been warned that annual water bills will need to rise 40% from next year to meet pollution costs.

The price hike would see typical bills go up from £450 to £680 a year. The warning comes after water prices rose by up to 11% April.

England’s water firms have been asked by the regulator Ofwat to submit plans by October to tackle pollution from sewage. But companies won’t be able to pay for measures such as improving storm overflows discharging in or near designated bathing spots without increasing bills for customers.

According to public consultation documents reviewed by The Times, most water companies are seeking approval from regulators for price increases averaging 25% between 2025 and 2030. But some areas could see bills hiked by up to 40%.

Customers in the firing line again

The bill hikes are particularly galling for consumers after water companies have repeatedly been criticised for wasting hundreds of millions of litres of water every day through leaking pipes, while several have been fined for pumping sewage into the country’s waterways.

For example, Southern Water was fined £90m for dumping raw sewage into rivers and coastlines in 2021 in nearly 7,000 separate incidents. According to The Times, the company has proposed an increase in typical bills from £432 to £677 by 2030.

Thames Water, which is on the brink of going bust, is proposing a 20% rise, while Wessex Water is said to be considering a 30% rise.

Earlier this week, South East Water announced a hosepipe ban for customer in Kent and Sussex. Customers of the firm are banned from using hosepipes for watering gardens, washing cars, patios and boats and filling swimming and paddling pools.

People who breach the restrictions could face a fine of up to £1,000. According to reports, the company is planning to increase bills by up to 39% by 2030.

The water bill warning comes as Brits continue to struggle with high energy bills, increasing interest rates, sky high food prices and rampant inflation.

‘Legalised fleecing’

Justin Bowden, GMB regional secretary, said: “Privatisation of the water industry has amounted to 40 years of the legalised fleecing of every household in the country.

“Three billion litres of water leak away every day due to underinvestment, while hosepipe bans are imposed after one of the wettest springs on record.

“GMB’s policy has long been to bring water provision back into public ownership, where the network of pipes from source to tap can be properly repaired and maintained, bills can be reduced for customers and maybe a little less sewage can be dumped in our rivers and seas while we’re at it.”