Water bills are slated to increase for over 30 million people, a move that has drawn criticism as many regions face drought and hosepipe bans. The water regulator, Ofwat, has granted five water suppliers permission to raise bills above previously agreed levels, even as the companies continue to lose billions of liters of water through leaks.
Prime Minister Andy Burnham expressed anger at water companies potentially using customers as a "blank cheque." The companies permitted to raise bills between 2027 and 2030 include scandal-hit Thames Water, Southern Water, South East Water, Severn Trent, and Wessex Water. Three of these companies have already imposed hosepipe bans affecting more than 20 million people this summer.
Ofwat stated that the provisional approval for these bill increases is intended to fund approximately £3.4 billion in new projects, such as infrastructure for housing and data centers. This comes on top of previous bill increases, including a 36 percent rise allowed between 2025 and 2030, and an additional 5.4 percent average increase implemented in April.
The prospect of rising bills is expected to amplify public anger, particularly given the ongoing scrutiny of the water industry for pouring sewage into waterways and significant water loss from faulty pipes. Critics attribute these issues to years of underinvestment in water infrastructure, while company executives have reportedly received substantial bonuses and dividends.
Victoria Atkins, a Conservative environment spokesman, called on the Prime Minister to present a concrete plan for the water industry, rather than offering mere sympathy. She also questioned plans for nationalization, suggesting it could lead to further bill increases, and urged the Labour party to clearly outline their proposals.
Burnham, who has pledged to lead a "cost of living government," echoed the sentiment that customers "cannot be treated as a blank cheque." He acknowledged public anger, stating that customers have been asked to pay more for years while pollution incidents reach record levels and infrastructure remains deficient.
Southern Water, which supplies 2.7 million customers, is set to see bills rise by approximately £80 over the next two years. Last year, the company lost about 37 billion liters through leaks, and its customers already face the highest average bills, around £759 annually, following an 8 percent increase this year.
Thames Water, which is reportedly facing potential special administration due to significant debt, has also been granted permission to increase bills for its 16 million customers. Severn Trent, serving around 8 million customers, is also included in the approved hikes. Thames Water recently faced public backlash for reportedly paying its new chief financial officer, Steve Buck, a £1 million signing-on fee.
Wessex Water, supplying 1.4 million people, expects bills to rise by £11 over the next two years. South East Water, with 2.3 million customers, anticipates a £1 increase.
Ofwat will conduct a consultation on the proposed rises until September 24, with a final decision expected in December. The regulator stated that performance will be monitored, and funds can be reclaimed if companies fail to meet expected improvements for customers and the environment.
Southern Water and Wessex Water have indicated support for customers facing payment difficulties, while Severn Trent and South East Water stated they are reviewing the proposals.