Water bills UK: companies want you to pay average rises of 40% per month - as sewage spills into our rivers

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10 of 11 companies are pushing for a staggering 40% increase in bills, despite ongoing sewage spills 💧
  • Water companies have requested a 40% increase in consumer bills by 2030
  • If approved, the move could raise average bills to £615 annually in England and Wales
  • The new proposals are higher than requests the water companies put in earlier in the year
  • The new demands come amid continued public outrage over sewage spills in the privatised water industry
  • Companies argue the hikes are necessary for upgrading infrastructure and meeting regulatory requirements

Water companies have submitted new requests to raise bills by 40% by 2030, reaching £615 annually, as reported by the watchdog Ofwat.

Earlier this year, companies had sought an average bill of £585 by 2030, which would have represented a one-third increase from the current average of £439. In July, Ofwat reduced these requests to an average of £535 in its draft price review.

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But now, after a consultation period, 10 of the 11 water companies have hit back with even higher requests than before.

The latest series of demands come amid public and political outrage regarding sewage spills in the privatised water industry, while companies' investors continue to receive dividends and top executives earn bonuses.

So why are companies proposing that bills rise, and when can consumers expect a decision on the matter? Here is everything you need to know.

(Photos: Getty Images)(Photos: Getty Images)
(Photos: Getty Images) | Getty Images

How much could water bills rise?

The biggest proposed rise in water bills comes from Southern Water, which would see bills for its customers in Sussex, Kent and Hampshire rise by 84% between now and 2030.

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Thames Water, the UK’s biggest provider, which is in emergency talks over a £15 billion debt pile and a worsening financial situation, has asked for a 53% rise.

The next biggest hikes are by Severn Trent Water, of 46% to £580, and north Wales provider Hafren Dyfrdwy, of 45% to £568. Only one company, Wessex Water, is not demanding higher bills than first requested.

Ofwat will make a final decision on bills increases on Thursday 19 December, with companies going to the negotiating table with regulators before then.

Why could water bills go up?

The latest string of demands come amid public and political outcry over sewage spills in the privatised water industry, while companies’ investors receive dividends and top executives get bonuses.

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A recent performance report by Ofwat showed there has only been a 2% reduction in pollution since 2019 despite firms committing to cutting it by 30%.

Labour has suggested sweeping new laws which could see bosses face up to two years in jail if they obstruct regulators – but so far nothing has come into force.

Many water companies argue that they need to spend more on upgrading their pipes, sewers and reservoirs than originally planned, and therefore need bills to go up too.

Ofwat wrote in an update that this was “mostly to meet the requirements of other regulators like the Environment Agency and Drinking Water Inspectorate”.

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But some of the increases are designed to meet “changes to the proposed rate of return for investors”. This means that part of the rationale for raising water bills is to ensure that the companies can provide sufficient profits to their investors.

Investors expect to receive dividends or profits from their investments, and if water companies need to adjust their pricing structure to meet these expectations, they may justify higher bills for consumers as necessary for financial viability.

What are your thoughts on the proposed increases in water bills amid ongoing issues with sewage spills and executive bonuses? We want to hear from you! Share your opinions and experiences in the comments section.

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