Ofwat says water companies can increase bills by £94

Water bills are proposed to increase on average by £19 a year over the next five years – a third less than the increase requested by companies, regulator Ofwat has announced. Under its draft proposals, the regulator said the average bill increase for water and wastewater companies would be £94 in total over five years – or £19 a year – excluding inflation.

It said companies’ business plans proposed increases averaging £144 over five years. Thames Water’s proposed increase of £191 by 2030 had been reduced to £99, while Severn Trent’s proposed increase of £144 had been reduced to £93.

Ofwat chief executive David Black said: “Customers want to see radical change in the way water companies care for the environment. Our draft decisions on company plans approve a tripling of investment to make sustained improvement to customer service and the environment at a fair price for customers.

“These proposals aim to deliver a 44% reduction in spills from storm overflows compared to levels in 2021. We expect all companies to embrace innovation and go further and faster to reduce spills wherever possible. Today’s announcement also increases the resilience of our water supplies to the impact of climate change and will reduce how much water is taken from rivers by enabling a range of long-term water supply projects, which includes plans for nine reservoirs.

“Let me be very clear to water companies. We will be closely scrutinising the delivery of their plans and will hold them to account to deliver real improvements to the environment and for customers and on their investment programmes.”