Millions of households face further water bill rises to fund £3.4 billion worth of investment in the network, after regulator Ofwat provisionally approved a package of funding.
The investment is intended to increase capacity, provide cleaner drinking water and upgrade treatment sites. However, it means bills are set to rise by up to £43 a year between 2027 and 2030 for many customers in England and Wales.
The hikes are not yet confirmed and are going through a consultation phase before any final approval is made in December. The rises come in addition to previously approved increases to upgrade the network between 2025 and 2030.
Helen Campbell, executive director for delivery at Ofwat, said: “We will track performance to ensure companies are delivering the expected improvements for customers and the environment. If they don’t, expenditure can be clawed back.”
Water firms say they need to increase bills to replace pipes, reduce leaks, provide water to more people and businesses, and because heavier rainfall can lead to more flooding and loss of water from storm overflows. However, recent rises have been met with criticism from households and campaigners following water supply issues and pollution in rivers and seas.
Kierra Box, water campaigner at Friends of the Earth, said: “Our rivers and seas are chock full of filthy sewage and chemicals, which have seen next to no improvement despite recent bill hikes. Now ordinary people are being asked to foot the bill once again to pay for decades of water company inaction on upgrading our crumbling water infrastructure. It’s daylight robbery.”
Customers with Anglian Water, Dŵr Cymru Welsh Water, Hafren Dyfrdwy, Northumbrian Water, South West Water, United Utilities, Yorkshire Water and SES Water will face no further bill rises between 2027 and 2030.