Millions of households in England are facing increased water bills following appeals made by five water companies to the UK’s Competition and Markets Authority (CMA). The companies involved—Anglian, Northumbrian, Southern, Wessex, and South East—were granted permission to raise bills beyond previously set limits established by the water regulator, Ofwat. Ofwat had imposed an average price rise of 36% over the next five years, which the companies argued was insufficient for necessary infrastructure investments.
As a result of the CMA’s decision, these companies can increase bills by an additional 3% on average, translating to an extra £12 per year for consumers. This adjustment is attributed to rising borrowing costs that impact the companies’ ability to finance their plans. Together, these firms serve over 7 million households and businesses and had originally sought higher increases, totaling £2.7 billion in extra revenue. The CMA’s independent review allowed only a fraction of this request, amounting to an additional £556 million.
Kirstin Baker, head of the CMA’s expert group, stated that the substantial bill increases requested by the companies were largely deemed unjustified. She emphasized the pressure on household budgets and the CMA’s effort to limit increases while still ensuring adequate funding for critical improvements. The environmental impact of outdated infrastructure has also come under scrutiny, with the Environment Agency noting a significant rise in serious pollution incidents attributed to water companies.
Thames Water, facing its own challenges, has deferred its appeal for higher price increases until later in October as it seeks to address a rescue bid. The CMA’s findings suggest an overall average increase of approximately £1 per household, per month. David Henderson, CEO of Water UK, indicated that many water companies have been operating at a loss and that investor support is critical for ongoing infrastructure investments. The conclusion of these findings is provisional pending approval from Ofwat, with specific percentage increases proposed for each company.
Source: https://www.bbc.com/news/articles/cvg4jkexgl1o?at_medium=RSS&at_campaign=rss