Households in England and Wales will see their typical annual water bills increase by an average of £86 starting in April, the industry regulator Ofwat has announced. The hike will be most significant in the first year, with smaller increases expected in subsequent years.
The rise, part of a five-year plan, is aimed at funding supply upgrades and tackling sewage discharges. The overall increase in bills—averaging £31 per year over the five-year period—exceeds Ofwat’s initial proposals in July but remains lower than the amounts requested by water companies.
Water UK, the trade body representing water firms, described the price hikes as essential, stating they would enable “much needed” investment in the sector. This fails to acknowledge that water companies have been paying out billions of pounds worth of dividends to their shareholders, while refusing to invest adequately in infrastructure for years. Now, they want us to pick up the bill, after already getting rich from pocketing our previous payments.
Water and wastewater companies are included in the increases, while water-only firms are set to raise bills by 22 percent, bringing their average annual charge to £234. This is at a time when increasing numbers of people are in water poverty and have to apply for cheaper rates.
Ofwat chief executive David Watt said the investment would significantly cut sewage spills, reduce leaks and ensure customers get a better service. That, of course, assumes that the businesses involved will use the money to invest in infrastructure adequately, which is at odds with their previous behaviour.
Sadly, the rising bills and lack of infrastructure investment is the inevitable result of having an industry run for private profit. Businesses will always do what makes them the most money, which is often at odds with the interests of working and marginalised people.
The increase in bills will vary by region. Households across England and Wales face stark differences in water bill increases over the next five years, with Southern Water customers bearing the brunt of the hikes. By 2030, average bills for Southern Water users are set to rise by 53 percent, reaching £642 annually.
In contrast, Wessex Water and Northumbrian Water customers will experience the smallest increases, at just 21 percent.
Thames Water, which is grappling with a significant debt burden, has been granted approval to raise bills by 35 percent, bringing the average annual charge to £588 within five years. The company had initially requested a 53 percent increase, which would have raised bills to £667. Following the regulator’s decision, Thames Water said it was “looking at the Ofwat decision.”
Water bill hikes are determined by Ofwat for a five-year period, though companies have the option to appeal through the Competition and Markets Authority, meaning that some could face higher bills than predicted.
Regional variations in bill increases stem from factors such as water availability and whether customers live in urban or rural areas, according to industry platform Discover Water.
The bill increases will not affect households in Scotland and the north of Ireland, where the water industry is publicly owned.
It’s time to demand that the English and Welsh water industries are taken back into public ownership, as a step towards a fully worker owned economy. Only when we own the economy communally, as a whole society, can we ensure that it operates for the benefit of ordinary people, not investors, and avoid situations like this.
