Water companies are poised to impose an above-inflation increase in average household bills starting April, sparking criticism from campaigners. According to Water UK, the trade body representing suppliers, the average annual water and sewerage bill in England and Wales is expected to surge by 6%, amounting to an increase of £27, bringing the total to £473. In Scotland, water and waste charges are anticipated to rise by 8.8%, equating to a £36 increase.
The announcement follows heightened scrutiny on water firms after revelations of sewage dumping into rivers. The surge in bills is being justified by the water industry as essential for securing future water supply and significantly reducing sewage in rivers and seas. David Henderson, Chief Executive of Water UK, emphasized that a record level of investment, exceeding £14.4 billion, is planned for the next financial year in England and Wales.
Giles Bristow, Chief Executive of Surfers Against Sewage charity, described the increase as a “small first step” toward addressing the sewage scandal. He acknowledged it as an awakening within the water industry to the extent of the issue.
While the average expected bill exceeds the latest inflation rate of 4%, actual individual bills can vary significantly due to regional differences and usage levels for those on a meter. Wessex Water and Anglian Water in England and Wales are expected to have the highest average bills at £548 and £529, respectively, while Northumbrian customers will experience the lowest average bills at £422.
Regulator Ofwat had previously instructed several water companies to limit rises due to missing key targets on leakages, supply, and pollution reduction. However, Welsh Water, serving the majority in Wales, plans to reduce bills by 1% in April.
Ofwat has also urged suppliers to provide assistance to those struggling with bills. David Black, Chief Executive of Ofwat, acknowledged the concern for those facing financial difficulties and emphasized the importance of water companies supporting those most in need.
More than a million households in England and Wales benefit from companies’ social tariff schemes, saving an average of £151 last year. Consumer groups are urging more water companies to use profits to fund social tariffs, especially considering the financial pressure on low-income customers.
Water UK’s David Henderson defended the industry’s use of profits, claiming a consistent 3% average rate since the start of the decade. He argued that hitting dividends would hinder the necessary investment and risk losing investors to other sectors and countries.
Separately, Ofwat is evaluating proposals by water companies in England and Wales to raise bills by £156 a year by 2030 to fund upgrades and reduce sewage discharges. This increase would nearly double infrastructure spending to £96 billion, according to Water UK. However, concerns have been raised about whether this increase will be sufficient to upgrade the aging water and sewage systems in the UK.
Public anger over sewage discharges into rivers and seas, coupled with ongoing cost-of-living pressures, adds to the challenges faced by the water industry. Additionally, there is an ongoing consultation into water charges in Northern Ireland. While acknowledging the financial burden on customers, experts suggest that investing in infrastructure improvements is essential for the long-term benefit of the country’s water and sewage systems.
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