Water companies across England and Wales have called for water bills to be raised even higher than Ofwat’s proposed rise of 21% between 2025 and 2030 – with Southern Water even requesting a 84% price hike.
In July, Ofwat (The Water Services Regulation Authority) announced plans for water bills to rise by an average of £94 over 5 years. The proposal was shared by Ofwat as part of its 2024 Price Review which is based on a review of company business plans.
A concrete decision will be formally made on 19 December this year, but with calls by utilities to raise prices even higher, there is a concern our bills may increase more than first thought.
What's happening?
Out of the 11 water companies in England and Wales, it is just Wessex Water that has not requested higher prices since the decision was made in July. On average, companies have called for a 40% increase in bills on average instead of the proposed 21%, as reported by Sky News.
‘The news from Ofwat regarding rising water bills being higher than expected is something everyone ought to seriously consider. These increases are connected to the ongoing necessity for improvements and upkeep of the water supply system's infrastructure,’ says Steven Kibbel, financial planner and Chief Editorial Advisor at Gold IRA Companies.
Ofwat's final decision will not be revealed until December, however the call for a larger price hike is no doubt concerning.
‘A potential jump in water bills is likely to be a worry for consumers, particularly when household budgets are still recovering from the fallout from the cost-of-living crisis, which dented personal finances up and down the country,’ says Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners.
‘The one sticking point with water companies is that unlike gas and electricity suppliers, you cannot choose which company supplies your water. It means households must either absorb the financial hit from a more expensive bill or consider ways to reduce their water consumption.'
‘Water-saving tricks could reduce a water bill, provided you are on a water metre where you are charged for the actual units you consume.’
What can I do?
If you’re worried about your water bill increasing, there are ways to save money on your water bill that you can start implementing now ahead of official announcement.
‘Whether it’s making sure none of your taps are dripping or leaking to opting for a shower over a bath, not leaving the tap running when you are brushing your teeth, shaving or washing up and using a watering can to water your garden or a bucket to wash your car rather than the hose - these simple lifestyle changes all have the potential to reduce your water consumption,’ says Alice.
‘Other water-saving tips include only running your washing machine or dishwasher when they are full or installing water-saving devices on your taps and in your toilet cistern that can save how much water you use. Some water companies offer these free of charge and may even be willing to do a free home visit to help you learn ways to conserve water use.'
‘Those on the lowest income may also be able to apply to their water company for a cheaper rate, known as a social tariff, though each company has their own scheme so eligibility can depend on the benefits someone is on. Those worried about the prospect of higher bills should get in touch with their water company now to find out what options are available.’
Ofwat will announce their official decision at the end of the year.
