TWO major water suppliers will hike bills for millions of customers by up to £143.
United Utilities and South West Water have confirmed increases of 32% and 23%, respectively, over the coming five years.
Ofwat announced in December that bills in England and Wales will rise by an average of £31 per year over the next five years.
The increase is significantly higher than the expected average rise of around £20 a year per household, outlined in the regulator’s draft proposals in July.
Ofwat said the increase would pay for a £104billion upgrade of the water sector to deliver “substantial, lasting, improvements for customers and the environment”.
United Utilities, which serves customers in Manchester and Liverpool, will now see their bill rise by £143 over the next five years.
The average bill for customers is currently £442 but this will now rise to £585.
Meanwhile, South West Water, which covers areas such as Devon and Cornwall will see their bill increase by £113 over the next five years, from £497 currently to £610.
The firm is run by Pennon, which also bought Sutton and East Surrey Water, but customers here will see their bills reduced by 3% over the next five years.
Currently locals in this area pay £221 but this will reduce to £215 come 2030.
Despite the average annual increase of £31, households will face a significant hike of £86 or 20% in the next year alone, excluding inflation, followed by smaller percentage increases in each of the subsequent four years.
Currently, the average water bill stands at £448 per year and is expected to rise to £479 next spring.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”Moment Taoiseach Micheal Martin confronted over Storm Eowyn aftermath as thousands left ‘frustrated’ by lack of water and power ” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6367886568112″ video_ids=”” width=”640px”]Overall, the average bill will increase by a total of £157 or 36% over the next five years.
But some firms have been allowed significantly higher increases.
Southern Water customers will face a 53% increase and Severn Trent households will see their bills rise by 47%, before inflation.
Dwr Cymru and Hafren Dyfrdwy have both been allowed to charge 42% more, while Yorkshire Water bills will rise by 41%.
[authenticated-scripts src=”%3Cscript%20class%3D%22palin-poll%22%20src%3D%22https%3A%2F%2Fwww.thesun.co.uk%2Fpollingwidgets%2Fv3%2Fwidget.js%3Fquestion_id%3D104596%26game%3Dpolling%22%3E%3C%2Fscript%3E” type=”embedded” width=”100″ /]Thames Water is to be allowed to hike consumer bills by 35%, as the regulator also handed it an £18.2million fine for paying “unjustified” dividends to shareholders.
These hikes were suggested by regulator Ofwat in December.
Water companies can appeal the decision and suggest the figure be either higher or lower.
COMPENSATION ALREADY DUE
It comes as water companies face criticism over record levels of sewage discharged into rivers and seas despite huge profits.
At the beginning of October, water companies were ordered to return £157.6million to customers after failing to meet pollution targets.
Each year, Ofwat evaluates the performance of England and Wales‘ 17 largest water and wastewater companies against key targets, including sewer flooding, supply interruptions, and water leaks.
For the second consecutive year, no company attained the highest rating, although four companies demonstrated improvement compared to the previous year.
As a result, millions of customers at 13 water companies will see their bills slashed next year as the watchdog issues fresh penalties.
The penalties for each water firm are as follows:
- Thames Water £56.8million
- Anglian Water: £38.1million
- Yorkshire Water: £36million
- Southern Water: £31.9million
- Welsh Water: £24.1million
- South West Water: £17.4million
- South East Water: £8million
- Wessex Water: £5.3million
- Affinity Water: £5.2million
- Bristol Water: £1.9million
- Portsmouth Water: £1.1million
- South Staffs Water: £700,000
- Hafren Dyfrdwy: £200,000
The regulator said that the amount returned to customers will be applied to bills from April 2025.
Water companies were set stretching targets for 2020-25 to deliver better outcomes, for both customers and the environment.
Where they fall short on these, the regulator imposes performance penalties resulting in customers being charged less than they would be the following billing year.
Performance penalties have totalled more than £430million since 2020.
Last year, Ofwat forced through bill reductions worth £177.6million.
On Thursday (December 19), Ofwat will confirm how much water companies are allowed to hike bills over the next five years.