Water companies seek to raise prices by up to 91% from 2025

Water companies have proposed increasing bills by up to 91% from 2025 in order to improve existing systems and reduce water pollution.

The proposals have been submitted to Ofwat (the Water Services Regulation Authority) who's survey has found only 16% of customers find the proposed rises to be affordable.

The decision has faced criticism as more and more consumers find themselves facing energy price rises and an ongoing cost-of-living crisis.

Which companies have requested increases?

A number of water companies have requested a water bill rate rise across the UK. The Consumer Council for Water has composed a list of the proposed increases for water companies for the years 2025 to 2030:

• Southern Water – 91% to £915
• Thames Water – 59% to £749
• Hafren Dyfrdwy – 56% to £676
• Severn Trent – 50% to £657
• Wessex Water – 50% to £822
• Yorkshire Water – 46% to £682
• Dŵr Cymru – 43% to £702
• United Utilities – 38% to £666
• South East Water – 35% £330
• Pennon – 33% to £644
• Portsmouth Water – 31% to £157
• SES – 30% to £315
• Anglian Water – 29% to £682
• Northumbrian Water and Essex & Suffolk Water – 26% to £530
• Affinity Water – 25% to £294
• South Staffs & Cambridge Water – 24% to £221

Why have water companies proposed these increases?

Water companies have justified these price increases by claiming they are needed for upgrades to existing systems, to better protect the environment whilst stressing the proposed increases are so far only estimates.

Katy Taylor, Southern Water's Chief Customer Officer, said: “While we await confirmation from Ofwat on our plan and the correspondent increase in bills, the numbers quoted have been increased by a third party to take into account estimated inflation levels over the next six years. 
 
“We share everyone’s concerns about rising payments in the face of a cost-of-living crisis. We have been able to keep bills low, with the average combined water and wastewater bill increasing by only £2 in the past 10 years in nominal terms. We agree with our customers that we must now charge more so we can bring our bills in line with inflation, rising costs and, more importantly, so we can invest more to meet the expectations of our customers, and protect and enhance our environment."

Southern Water also stated they already provide help with water bills to over 120,000 customers and predict this to rise to 200,000 by 2030.

'Water privatisation has been a catastrophic failure for this country'

The decision to raise water bills has prompted outrage with Ofwat's own survey finding that only 16% of customers though the proposed water bill increases were affordable.

Gary Carter, National Officer at the GMB union, expressed his outrage at the proposal, stating: "These people have no shame.

"Their water is so dirty it's literally putting people in hospital, yet the top brass see fit to hand themselves and other shareholders yet another payout. The way water companies behave - it's like they actively want the public to hate them. Water privatisation has been a catastrophic failure for this country."

Ofwat’s CEO David Black said: “Company business plans are an important first step in the price review process. Ofwat’s role is to forensically scrutinise their proposals, to ensure any increase in bills is justified, efficient and delivers significant improvements in river and bathing water quality. We will assess how companies are helping customers to afford any bill increase.

“As we work through the business plans we will continue to monitor companies’ performance, hold them to account for delivering improvements and push them to build meaningful plans to change.”

The Guardian has reported that Ofwat is set to refuse water companies requests to raise water bills but the decision has been delayed until July 11 due to the upcoming general election.