Water companies in the UK are pushing for substantial increases in customer bills, with some firms seeking hikes of up to 84 per cent over the next five years.
Southern Water has requested the highest increase at 84 per cent, while Thames Water, the country’s largest water supplier, is asking for a 53 per cent rise.
These proposals come as water firms aim to upgrade their networks and cope with rising energy costs.
The potential bill increases are significantly higher than previously suggested by water regulator Ofwat, which had earlier proposed a £94 rise over five years.
The news comes as a fresh blow to customers already grappling with the cost of living crisis.
Northumbrian Water has requested the smallest increase at 21 per cent for the 2029-2030 financial year.
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These proposed hikes are intended to fund upgrades to water networks, which have suffered from years of underinvestment.
The increases will also cover rising energy costs associated with pumping water and treating sewage. Water companies argue that these investments are necessary to improve infrastructure and maintain service quality.
However, the scale of the proposed increases has raised concerns about affordability for customers. The water industry has faced criticism in recent years for pumping raw sewage into UK waterways while simultaneously raising bills.
Ofwat, the water regulator, is currently reviewing these proposals. The final decision on bill increases is expected to be announced towards the end of the year.
The proposed bill increases come in the wake of earlier suggestions by Ofwat, which had indicated a potential £94 rise over five years.
This equates to approximately £19 per year.However, the latest proposals from water companies far exceed these initial estimates.
In July, Ofwat agreed to allow water bills to rise by an average of 21 per cent between 2025 and 2030. The regulator is now faced with deciding on these significantly higher requests.
In response to these issues, Labour has announced plans for an independent commission to advise on a “proper reset” of the industry.
Households have struggled to pay bills amid the cost of living crisis PAThe commission will seek input from various stakeholders, including customers and environmental bodies.
Furthermore, the Government is also set to announce plans for the “biggest overhaul” of the water industry since its privatisation.
This comes as Ofwat recently ordered water companies to return £158million to customers in bills after all 17 firms missed targets to reduce pollution, leaks, and supply interruptions.
GB News has contacted Ofwat for comment.