The United Kingdom is set to witness a surge in water bills, with an increase of £31 per annum for the next five years from April likely. While the rise is higher than the £19 per year anticipated earlier by the industry regulator Ofwat, it is nonetheless at a lower level than what water companies had initially demanded. Ofwat argues that the increase is enough for the water supply and wastewater treatment companies operating in England and Wales to reduce their sewage discharges and upgrade their services.
David Black, the CEO of Ofwat, has asserted that the investment will drive an improvement in service for customers and result in a reduction in sewage spills and leakage. While the bill hikes vary depending on the region, one of the most burdened is Southern Water, where customers would be subjected to a 53% increase by 2030, amounting to an average of £642. At present, the company faces an even greater challenge of disrupted supplies, impacting more than 58,000 properties. Conversely, areas such as Wessex and Northumbrian Water will witness a minimal increase of 21%.
The decision has attracted criticism in recent years due to the water industry’s environmental record, with unresolved challenges surrounding leaks and sewage discharges into rivers. Nevertheless, Ofwat has reassured users that the rise would fund the entire industry’s £104bn upgrades, a move aimed at reducing water pollution. Meanwhile, Rebecca Sinker, a member of Clean Water Action Group in Hastings, expressed her concerns over the lack of infrastructure upgrades for Southern Water, which serves her area. She said that the company had neglected maintenance, which would have made customers unhappy and wary of the cost of bill rises. According to her, “We don’t trust them to spend our money in the right way, and we can’t go anywhere else for our water. It’s a private company monopoly.”
It is worth noting that the £31 rise is without considering the impacts of inflation, which could lead to an even more significant financial burden for customers in the future.
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