Water bills are set to increase by an average of 36% over the next five years…
Ofwat Explained
The Water Services Regulation Authority (Ofwat) is the body responsible for regulating the privatised water and sewerage industry England and Wales.
Water companies share their five-year plans with Ofwat outlining how they will improve their services. Ofwat then decides a limit on the maximum amount companies can then charge their customers for the next five years. After those five years have passed, another price review will take place, and so it continues.
How Much is the Increase?
Water bills in England and Wales will rise by an average of £86 this April, not accounting for inflation. They will then increase by a smaller amount year-on-year, with the average bill going up by £157 over the next five years (a 36% increase).
Although this is a significant increase to our household bills, it is still lower than what most companies proposed, with an average company proposal of a 44% increase in bills.
You can find your water and wastewater company here.
Why are Bills Rising?
Ofwat says the increase in consumer bills is in part to pay for £104 billion upgrade to the water sector to improve services to customers and allow for “substantial, lasting, improvements for customers and the environment.” New investment will be quadrupled over the next five years.
Water UK, who represent the water companies, said:
“This will be the largest amount of money ever spent on the natural environment, and will help to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers and seas. Each water company will now need to take time to assess what Ofwat’s decision means for them.
“We understand increasing bills is never welcome. To protect vulnerable customers, companies will triple the number of households receiving support with their bills to three million over the next five years.”
Struggling to Pay Your Water Bill?
You may be able to get additional help with your bills if you are on a low income or are claiming benefits. This could include:
- Installing a water meter so that you are paying only for the water you use
- Social tariffs, where your water company can reduce your bills. Who is eligible will depend on your water company
- Getting your water supplier to cap the amount you will have to pay each year (the WaterSure scheme)
WaterSure is a scheme to help those who are struggling to pay their water bills. To apply you must:
- Be on certain benefits (you should check with your supplier what benefits they cover)
- Need to use a lot of water for medical reasons or because you have three or more children under 19 in full-time education living in your household
- Be on a water meter or be waiting to have one installed
For more information on what to do if you are struggling to pay your water bill, click here.