Thu, 09 Oct 2025

Thu, 09 Oct 2025 Water bills to rise further for millions after regulator backs extra price increases

Five water companies win permission for higher bills as they seek more funds to fix outdated infrastructure.
A UK competition body has agreed to let five water companies in England increase their customers' bills by an extra 3% on average, or £12 per year. This is higher than the previously announced rises, which averaged 36% over five years. The companies - Anglian, Northumbrian, Southern, Wessex and South East - had asked for bigger increases to fund better infrastructure, but a panel appointed by the Competition and Markets Authority (CMA) decided to limit their requests. The five water companies serve more than 7 million households and businesses, and had originally requested £2.7 billion in extra revenue. However, the CMA's experts only allowed an additional £556 million, which is 21% of the total amount asked for. "We've found that water companies' requests for significant bill increases are largely unjustified," said Kirstin Baker, who chaired the group of experts. "We understand the real pressure on household budgets and have worked to keep increases to a minimum." The CMA's proposals are provisional, and Ofwat and the water firms will have a chance to respond before the CMA makes its final decision in a few months. Water companies finance their investment plans with borrowed money, and higher interest rates on those loans have made it more expensive for them to carry out their plans. The Environment Agency has been calling for water firms to fix outdated infrastructure that causes pollution. Citizens Advice's Anne Pardoe said the bill increases would "stretch budgets beyond breaking point", and called for a national social tariff to help low-income households pay for essential bills.
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