Water bills are proposed to increase over the coming years, but why are they rising, and by how much?
How Much Are Water Bills Going Up By?
The real average bill for the charging year of 2024-25 is now £473, up from £464 in 2023-24, representing a 1.9% increase, and the rises don’t stop there…
Ofwat has proposed that bills should increase by an average of £19 a year between 2025 and 2030, amounting to a £94 rise over the 5-year period. This is an average rise of 21% to our water bills (before inflation).
This is not the final agreed upon figure, as we will not receive that until December, following a consultation.
Even if this was the final agreed figure, this is not to say that 21% is the exact amount your water bill would go up by either, as it depends on what company you get your water from.
For example, those with Southern Water will see a 45% rise, coming to an average annual bill of £603, whereas SES Water will see a 15% decrease, bringing their average annual bills down to £187.
Why can’t I just pick the cheapest supplier then? Well, unfortunately, we don’t have a choice in where we get our water from; who our supplier is comes down to where we live. You can find what water supplier you’re with here.
While Ofwat sets price controls for water and sewage companies in England and Wales, it is still up to each individual water company to decide how much to charge customers within these boundaries.
Water Companies Want More
Many water companies do not feel like these rises are enough. The overall rise proposed across the water companies in their business plans was 33% (before inflation), meaning that Ofwat has taken 12% off the overall water and sewage bill compared to what these companies requested in Spring this year.
According to Water UK, water companies had set out plans to invest £105 billion, which Ofwat has proposed cutting by £17 billion.
Water companies are warning Ofwat, the water regulator, that it’s proposal to cut these investments will put much-needed improvements at risk.
“Water companies want to invest £105 billion to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers. Ofwat wants to cut that investment by £17 billion – a record amount.
“Ofwat has a difficult job, but investors are telling us that they need Ofwat to change its approach. Unless the right conditions to invest are put in place, our environment and our economy will pay the price. We cannot delay upgrading and expanding vital infrastructure any longer and need Ofwat to reconsider its approach.” – David Henderson, Water UK Chief Executive
Why Are Prices Rising?
A key reason cited by water companies in their decision to raise prices is investment. This includes investment in fixing the UK’s water infrastructure, improving water quality and installing new facilities, such as reservoirs and water recycling plants. To read more about the issues we have had with the quality of our water supply, click here.
However, not all of the money from our bills goes towards improving the water we are paying for…
The Guardian has released an interactive tool where you can find out how much your bill could rise, how much your water company spends servicing debt, and which companies have been giving the most payouts to shareholders. They found that almost 20p of every pound paid by customers goes towards servicing the industry’s debt, which currently stands around £60.3 billion.
They also report that between 1990 and 2023, English water companies have paid out £53 billion in dividends, meaning a huge chunk of the cash that comes from our bills is going towards paying shareholders.