Anger as water regulator set to again 20% hike in family payments TODAY – to repair the ‘twin crises’ of air pollution and shortages
Water bosses are today expected to give the green light to huge bill increases of at least 20 per cent.
Ofwat will allow companies to increase bills to fix the ‘twin crises’ of pollution and shortages.
It is likely to mean an increase in bills of 20 per cent, before inflation is added, over the next five years to help fund £88billion of investment in improving services and the environment.
The proposed bill rises would begin to take effect from April next year.
But the move comes at a time of public outrage over pollution in rivers, huge salaries paid to water company bosses and massive dividends taken by shareholders.
Just this week the Office for Environmental Protection ruled that water companies should have had no excuse to tip sewage as the law has been clear that it is illegal since at least 1994 – but the Department for Environment, the Environment Agency and Ofwat failed to enforce the law.
Between 2021 and 2023 alone water companies paid £2.5billion in dividends and added £8.2 billion to their net debt.
Southern Water wants to be allowed to increase bills by 84 per cent, while scandal-hit Thames Water wants Ofwat to approve a 53 per cent hike.
The proposed bill rises would begin to take effect from April next year but the move comes at a time of public outrage. Protesters (pictured) hold ‘Boycott Thames Water’ placards opposed to the bailout during the demonstration
Campaigners gathered outside the Royal Courts of Justice yesterday urging the court to block the Thames Water application for a 3 billion pound bailout
Ofwat have said that it will allow companies to increase bills to fix the ‘twin crises’ of pollution and shortages
Thames Water will get particular attention as the company is in the midst of a bailout, in the form of a £3 billion loan from creditors.
The company, which serves about 16million people, is in the grip of a funding crisis and only has enough cash to continue operating until March.
Thames Water is already in more than £16billion worth of debt, which will rise even further if the rescue deal is approved by a court in February.
Matthew Topham, Lead Campaigner at We Own It, a group campaigning for public ownership of public services, said: ‘It’s utterly disgraceful that after 35 years of bonus scandals, sewage spills, and huge dividends, water firms are set to be rewarded by Ofwat with huge inflation-busting bill hikes. It’s little more than government-sanctioned daylight robbery.’
Liberal Democrat environment spokesman Tim Farron MP said: ‘This is surely the final nail in the coffin for Ofwat, a toothless, defunct regulator that has watched on idly whilst feckless water companies have pumped gallons of disgusting sewage into British waters.
‘It is an absolute outrage that customers have had to foot the bill in the middle of a cost of living crisis for the mess that water companies have created.
‘Increases in bills will be money down the plughole unless water companies are held to account. The Liberal Democrats have led the campaign against sewage, calling for a new water regulator, an end to executive bonuses and legal protections for our beautiful environment.’
An Ofwat spokesman said: ‘Our intention is to set a balanced package on Thursday that delivers better services for customers and ensures the sector attracts the investment it needs to deliver cleaner rivers and seas.
‘We know that many customers continue to struggle with cost of living pressures and need extra help at this difficult time. Water companies in England and Wales are planning a significant increase in support for customers struggling to pay.
Thames Water will get particular attention as the company is in the midst of a bailout, in the form of a £3 billion loan from creditors
Between 2021 and 2023 alone water companies paid £2.5billion in dividends and added £8.2 billion to their net debt. Pictured: An overflow pipe releases water into the River Thames
‘The proportion of customers that receive social tariff support will rise to at least 8 per cent in the 2025-30 period.’
Writing in the Daily Telegraph at the weekend, Environment Secretary Steve Reed said: ‘We are facing this twin crisis of water pollution and water shortages because the Conservatives refused to invest to upgrade crumbling water infrastructure.
‘Instead they let water companies divert customers’ money to line the pockets of their executives and shareholders.’
He wrote: ‘This week the independent water regulator will announce water bill rises to repair the damage. The public are right to be angry.’
Industry body Water UK has estimated that water bills would be £110 or 25 per cent higher today had they kept pace with inflation.
A spokesman said: ‘Water companies want to invest a record £108billion to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers and seas.
‘We await Ofwat’s decision tomorrow and hope they give us the green light so we can get on with it.’
