Water bills could rise by up to 84% in fresh blow to struggling Brits

Water bills are set to soar beyond the initial £100 increase anticipated, adding further pressure to already struggling households across the UK.

Earlier this year, Ofwat, the water watchdog, suggested an increase of £94 over five years – amounting to £19 per annum – citing the need to "fund higher costs and investment" within the industry as a justification.

Nevertheless, the BBC has reported that increases could surpass this figure. The deciding factor on how much customer bills will surge is currently under Ofwat's deliberation and remains undisclosed at this point in time.

In July, Ofwat sanctioned an average hike of 21% in water bills from 2025 to 2030, although the exact rise varies between providers. Customers of Southern Water are potentially facing the hefty weight of a 44% escalation in their bills over the five-year period, which represents the largest increase amongst suppliers.

Conversely, Affinity Water customers could expect the smallest uptick at 6%. Meanwhile, Thames Water, Britain's biggest water firm, had a 23% hike approved.

However, amid financial challenges, the company argued for a necessary 59% increase to maintain usual service levels. It is believed that Ofwat's consent for these heightened bill surges reflects the augmented financing costs that water companies are encountering, reports the Mirror.

Sky News has reported potential new plans that could see Southern Water seeking to raise bills by a staggering 85%, while Thames Water is requesting an increase of 53%. In contrast, Wessex Water stands out as the only utility among English and Welsh water firms not pushing for higher bills than initially requested from the regulator back in July.

The final decision on these proposals is expected to be confirmed on December 19.

Water suppliers have been under scrutiny recently due to the significant levels of raw sewage they've discharged into UK waterways, alongside increasing customer bills. Furthermore, investors have faced criticism over dividends and executive pay.

Earlier this month, the industry regulator demanded that water companies return £158 million to customers through bill reductions after all 17 firms failed to meet targets aimed at reducing pollution, leaks, and supply interruptions.

In related news, the BBC reports that Labour is poised to announce the establishment of a new independent commission tasked with advising the government on a "proper reset" of the water industry. This move aims to enhance performance and draw fresh investment.

The commission's review will incorporate perspectives from key UK stakeholders, including consumers, environmental groups, investors, and engineers. Additionally, the government is preparing to unveil plans for what is being described as the "biggest overhaul" of the water industry since it was privatised.