Water bills are set to rise by £94 over the next five years as Ofwat implements steep price increases
Household water bills are set to rise by an average of £94, or 21 per cent, over the next five years after regulator Ofwat approved steep price increases.
The increase in bills will pay for upgrades to pipes and reservoirs that water companies say are desperately needed – but will also benefit paying investors.
Environment Minister Steve Reed said this week that consumers would be “angry” about the rises in water costs.
The bill increase will take place from April 2025.
Ofwat has been involved in heated discussions with water companies this year over how much its bills could rise.
Water torture: Higher bills come amid outrage over waterways polluted by sewage
Initially, water companies wanted to increase their bills from an average of £585 by 2030, an increase of 33 percent.
Ofwat said no in July and proposed a 21 per cent increase to £535.
Water companies then came out in October, demanding bill increases of an average of 40 percent, with some asking for increases as high as 84 percent.
Ofwat then went away to think about what to do, before reaching his decision today to allow a 21 percent increase.
Four water companies successfully challenged Ofwat’s last pricing ruling in 2019, which saw customers’ bills rise by more than the regulator first set.
Ofwat chief executive David Black said: “Our draft business plan decisions approve a threefold increase in investment to deliver sustainable improvements to customer service and the environment at a fair price for customers.
‘Let me be very clear to the water companies. We will closely monitor the implementation of their plans and hold them to account to deliver real improvements for the environment, for customers and for their investment programmes.”
A survey by the Consumer Council for Water (CCW) in November showed that 18 percent of customers are already having difficulty paying their water bill.
Forty percent said they would find it difficult to pay a 21 percent bill increase, let alone any higher.
Matthew Topham, chief campaigner at We Own It, a group that campaigns for public ownership of public services, said: ‘It is utterly disgraceful that after 35 years of bonus scandals, sewage leaks and huge dividends, water companies are about to be rewarded by Or what. with huge inflation-reducing increases in bills.
‘Why should the British have to cut back on food and other essentials, as many fear these increases will be necessary, to pay a privatization tax on wealthy foreign shareholders?’
How to save money on your water bill
Consider a water meter
About 40 percent of households in England and Wales do not have a water meter, and some of these would save money on water bills if they had one installed.
Purchasing a water meter is usually the best way to save money on bills, for those who don’t use an above-average amount of water.
Not everyone will save money with a meter, but water companies usually give you two years to try one out and you can switch back if you’re not happy.
The CCW has one calculator that will help you understand whether a water meter can save you money.
The rule of thumb, however, is that a water bill can lower your bills if you live in a home with a high “rateable value” (the formula used to determine the estimated water bill), don’t use much water, or live alone.
Use less water if possible
If you have a water meter, using less water means paying lower bills.
The water bill for houses with these meters consists of fees for the water used and daily fixed charges.
But using less water also means lower energy bills, because much of the water that homes use is heated first.
Check whether you qualify for a social rate
Every water company in England and Wales has its own social tariff scheme, designed to help low-income customers.
But who qualifies and the level of support offered varies greatly from company to company. In some cases, bills can be reduced by as much as 90 percent.
CCW has a list of social rates and criteria on its website.
For example, Thames Water’s social rate is called Water Help.
It reduces water bills by 50 percent for homes where it costs more than 5 percent of their net income.
According to the CCW, almost two million households (or 15 percent) are eligible for social water rates, but have not signed up for them.
Consider the WaterSure scheme
WaterSure is a government program run by water companies to reduce bills for eligible households in England and Wales.
To qualify, a household must receive certain benefits such as Universal Credit, Pension Credit, Housing Benefit or means-tested Employment and Support Allowance.
Most of the benefits on the list are for people with low incomes.
A household that joins WaterSure also needs large amounts of water, either for medical reasons or because there are many young children.
They must also have a water meter or be on a waiting list.
WaterSure offers discounts on both the water and sewer portions of a water bill.
To apply, you will need to fill out a form from your water company and will likely be required to prove that you are receiving benefits and have a qualifying medical condition.
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