Water companies in the UK are calling for an increase in bills by £156 a year to fund upgrades and reduce sewage discharges. The increase would lead to infrastructure spending almost doubling to £96bn. The water industry is proposing the construction of ten new reservoirs to secure the country’s water supply in the long-term. While there has been public anger over the continued cost of living pressures, the increase is said to be essential to make the UK’s sewerage system fit for purpose for the first time in over a century.
If approved by the regulator Ofwat, the investment proposals from Water UK would amount to record-breaking spending. The water industry watchdog said it is planning its most ambitious modernisation of sewers since the Victorian era. By 2030, it estimates that it could reduce leaks by a quarter compared with 2020. It also aims to reduce sewage spills into waterways by more than 140,000 each year. Last year, water companies spilled sewage into rivers and seas over 300,000 times.
The cost of upgrading the UK’s sewerage system would be spread over several decades. If approved, the average annual bill would rise by £84 in 2025, increasing to an additional £156 by 2030. While the investment plans have been broadly welcomed by Environment Secretary Therese Coffey, she said Ofwat should ensure that customers do not pay the price for poor performance. The regulator has been handed “full powers” to act on behalf of consumers.
Last week, Ofwat ordered water companies to pay back £114m to customers through lower bills after missing key targets. The regulator said firms were “falling short” on performance measures around leaks, supply and reducing pollution. Not one company reached the highest measure of performance; Dŵr Cymru, Southern, Thames, Anglian, Bristol, South East and Yorkshire Water fell into the lowest category of “lagging”, while the remaining 10 were rated “average”. Ofwat restricts the cash that companies can take from customers if they fail to meet the regulator’s targets
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