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Water bills to rise by an average of £86 this year, with four more hikes ahead

This comes as regulator Ofwat said it will allow companies to raise average bills by £31 a year, or £157 in total, over the next five years to £597 by 2030 to help finance a £104 billion upgrade for the sector.

That represents a 36% increase before inflation, which will be added on top.

However, despite the average £31 a year increase, households will be hit particularly hard from April with an average hike of £86 or 20% front-loaded into the coming year, with smaller percentage increases in each of the next four years.

Consumer groups warned that the increases were “more than what many people can afford”.

Consumer Council for Water chief executive Mike Keil said: “These bill rises may be less than what water companies wanted but they are still more than what many people can afford.

“We know at least two in five households will find these increases difficult to afford but the support being offered by some water companies lacks ambition.”

Tom MacInnes, director of policy at Citizens Advice, said the price rises will “hit many households hard”.

Friends of the Earth accused Ofwat of “caving to pressure” from firms, leaving customers to “pick up the tab for decades of under-investment in our crumbling water infrastructure”.

Sienna Somers, senior nature campaigner at the organisation, said: “Dirty water companies shouldn’t be able to rely on their customers to foot ever higher bills while they line the pockets of their shareholders and leave our rivers brimming with sewage.

“These extortionate price rises won’t guarantee us cleaner water or solve the sewage crisis, they simply reward businesses for breaking the rules that protect people and nature. That’s why now more than ever, we need the human right to a healthy environment enshrined in law, so that communities can hold water companies to account.”

The confirmed increase to bills is significantly higher than the 21%, or £19 a year, rise per household, outlined in the regulator’s draft proposals in July.

Since then, the regulator has been in detailed discussions with each water company over their spending plans.

The biggest bills increase will be allowed for Southern Water, whose customers will pay 53% more by 2030. 

Bills will rise by 47% for Severn Trent customers, with a 42% increase for customers of the Welsh water companies Dwr Cymru and Hafren Dyfrdwy.

Thames Water is to be allowed to hike consumer bills by 35%, as the regulator also handed it an £18.2 million fine for paying “unjustified” dividends to shareholders.

The ruling falls well short of the 59% Thames Water had said it needed in the run-up to the decision, as the embattled water company tries to negotiate a bailout.

The company, which serves about 16 million people in London and the South East, is battling a funding crisis that could see it run out of cash by March.

our sewage system crumbled. They irresponsibly let water companies divert customers’ money to line the pockets of their bosses and shareholders.

“The public are right to be angry after they have been left to pay the price of Conservative failure.

“This Labour Government will ringfence money earmarked for investment so it can never be diverted for bonuses and shareholder payouts. We will clean up our rivers, lakes and seas for good.”



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