In a further blow to households grappling with the cost of living crisis, water bills are set to surge by over a third in the next five years. The increase has been sanctioned by Ofwat, the water company regulator, as a measure to tackle the “twin crisis” of pollution and water shortages.
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According to Ofwat, bills will see an average rise of 36% above inflation over the next half-decade, with different suppliers implementing varying increases. The hikes will range from 21% to 53%.
This translates to an extra £31 per year for the average household over the next five years, as reported by the Express.
The price hike is intended to fund over £100 billion worth of investment in the UK’s water network. Issues such as an ageing sewage system, poor environmental performance, and a lack of new reservoirs have eroded public trust in the country’s water suppliers.
David Black, Chief Executive of Ofwat, commented: “Today marks a significant moment. It provides water companies with an opportunity to regain customers’ trust by using this £104 billion upgrade to turn around their environmental record and improve services to customers. Water companies now need to rise to this challenge, customers will rightly expect them to show they can deliver significant improvement over time to justify the increase in bills.”
“Alongside the step up in investment, we need to see a transformation in companies’ culture and performance. We will monitor and hold companies to account on their investment programmes and improvements. We recognise it is a difficult time for many, and we are acutely aware of the impact that bill increases will have for some customers. That is why it is vital that companies are stepping up their support for customers who struggle to pay.”
Charles Watson, founder and chair of River Action, expressed: “It is a travesty that customers are now being forced to pay higher water bills, especially when these increases are directly the result of years of under-investment by the water industry.”
“Shareholders in the water companies must be laughing all the way to the bank. With customers now being forced to foot the bill to repair and upgrade the water industry’s crumbling infrastructure, the very people who have already benefited for years from huge dividend payments, will see the value of their assets increase in thanks to this customer funded investment.”
“The real question remains staring us unanswered in the face: when will those who have profited so rapaciously from decades of operational neglect, causing horrendous environment damage in the process, finally be held accountable and made to pay up for their totally irresponsible custodianship of these essential public services?”
Have your say! Are privately owned water companies a good or a bad thing for the country? Do you notice problems in your area? Comment below, and join in on the conversation.