Should water firms be nationalised? Vote in our ballot
Water companies across England and Wales have called for bills to be increased even higher than initially requested in July, with one company demanding a hike of 84 percent – and we want to hear your thoughts.
According to the latest figures published by water regulator Ofwat, Thames Water has asked for tariffs to rise by 53 percent and cost £667 a year by 2029/30, reports Sky News. This would make the utility company, which serves 16 million customers, the most expensive in England.
Under the potential new plans, Southern Water wants to raise bills by 84 percent, while only one utility, Wessex Water, is not seeking even higher bills than they first requested earlier this year. On average, the latest request would see bills for customers across England and Wales soar by 40 percent to £615, between now and 2030.
It is understood that Ofwat is allowing the bigger increases in bills to reflect the higher financing costs for water suppliers. Water companies call for tariff hikes to upgrade their networks and pay for higher energy expenses, which makes up around a tenth of their costs, reports the Independent.
Ofwat is set to make their final decision on December 19. The requests come after the regulator agreed in July to allow water bills to rise by 21 percent on average between 2025 and 2030.
Suppliers have made headlines over the last few years due to the level of raw sewage they are pumping into the UK’s waterways. Investors have also been condemned for the dividends and executive pay they have received.
Earlier this month, the regulator ordered water companies to return £158million to customers in bills after all 17 firms missed their targets to reduce pollution, leaks, and supply interruptions. This has led to growing calls for water companies to be nationalised, but this figure would cost an eye-watering £99bn.
Speaking to the House of Lords last month, Baroness Hayman, a Department for Environment, Food and Rural Affairs (Defra) minister, said: “Given the significant costs attached, the government has no intention to nationalise water companies.”
This week, the BBC reports that Labour will announce a new independent commission that will advise the government on a “proper reset” of the industry to improve performance and attract new investment. The commission’s review will receive input from major UK stakeholders including customers, environmental bodies, investors and engineers.
The government is also set to announce plans for the “biggest overhaul” of the water industry since its privatisation. With water bills expected to soar, we want to know if YOU think utilities should be nationalised. Vote in our poll HERE to have your say.
The Mirror will also be discussing the topic with you in the comments section below and you can join in! All you have to do is sign up, submit your comment, register your details and then you can take part.
