Households in England and Wales will face a significant rise in water bills, with increases of over 20% expected from April 2024.
London: So, it looks like water bills in England and Wales are about to take a big jump. Starting in April, households can expect to see their bills rise by at least 20%. That’s a hefty increase, right?
Ofwat, the water regulator, is set to announce this change soon. They’re saying the average bill will go up from £448 to around £542 a year. That’s an extra £20 annually for most households.
Why the increase? Well, it’s all about fixing the issues with pollution and water shortages. Ofwat has already hinted that water companies will need to invest a whopping £88 billion to improve services and the environment.
But here’s the kicker: some companies are asking for even bigger hikes. Thames Water, for instance, is in a bit of a pickle financially and wants to raise bills by 53%. Southern Water is looking for an even steeper increase of 84%!
Thames Water serves about 16 million people and is currently dealing with a massive £16 billion debt. They’re hoping for a £3 billion bailout, but that means they’ll need to charge customers more to make it work.
Ofwat is aware that many folks are struggling with the cost of living. They’re planning to increase support for those who find it hard to pay their bills. They want to make sure that at least 8% of customers get some help by 2025.
Environment Secretary Steve Reed has been vocal about this issue, blaming the previous government for not investing in water infrastructure. He’s saying the public has every right to be upset about these rising costs.
Consumer groups are also worried. They’re urging water companies to step up and provide more support. Many households might find it tough to handle these increases, and it’s crucial that help is available.
Experts believe that while investment in water systems is necessary, it shouldn’t come at the expense of those who are already struggling. A comprehensive social tariff could be the answer, making sure everyone gets the support they need.
Water UK has pointed out that if bills had kept up with inflation, they would be about 25% higher today. They’re hoping Ofwat will give the green light for the necessary investments to improve our water systems.