Water bills to rise by even more than expected for thousands of homes

Ofwat had previously allowed 16 water companies to increase bills by an average of £157 over a five-year period, between 2025 to 2030

Thousands of households will see their water bills rise by more than previously agreed after five companies complained to the competitions watchdog.

Ofwat had previously allowed 16 water companies to increase bills by an average of £157 over a five-year period, between 2025 to 2030.

But five of these firms – Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water – argued that this decision meant they would be unable to meet regulatory requirements.

The companies told the Competitions and Markets Authority (CMA) wanted the green light to raise an extra £2.7billion in revenue – but following a review by an independent group, they have been allowed an additional £463million.

This is expected to result in an average increase of 2.2% in bills for customers. These companies collectively serve approximately 14 million people.

This comes on top of the 24% hike they had already been allowed, but is less than the 3% increase to bills they had been provisionally granted in October.

Chair of the independent group Kirstin Baker said: “We’ve rejected most of the bill increases water companies asked for but allowed limited extra funding where that’s genuinely needed, balancing concerns about affordability with the need to secure our water supplies and cut pollution.

“A significant part of this extra money reflects market movements since Ofwat’s decision.”