Why are water bills increasing and what can I do?

Industry regulator Ofwat has said water bills in England and Wales will rise by an average of £86 from April 2025.

The increase, which varies depending on where customers live, is to help water companies pay for problems including sewage leaks.

Average water bills will increase by 36% between 2025 and 2030.

The increase will average £31 a year, but Ofwat said companies can expect a higher increase in the first year.

Individual water companies decide how much to charge customers, although Ofwat sets limits.

Most people in England and Wales get their water from one of 17 companies and their waste water from one of 11 companies.

Families can’t choose a supplier – this depends on where you live.

Price increases vary from region to region. The biggest increase will fall on Southern Water customers, with bills rising by 53% by 2030 – to an average of £642.

Wessex and Northumbrian water bills will increase by the smallest amount – 21%.

thames water, which is suffering from financial crisisWill be able to charge customers 35% more, with bills totaling up to £588.

Every five years Ofwat sets the level of service that customers can expect and how much it costs companies to run efficiently.

Ofwat’s announcement – ​​or “final determination” – For water bills between April 2025 and 2030 Calculated without inflation, meaning the actual bill is likely to be higher.

Ofwat suggested in July increasing bills by an average of 21%But the water industry insists this is not enough to tackle the problems facing water companies.

The firms said they needed the extra money to replace old, leaking pipes and reduce sewage discharges into rivers and seas.

Water UK, which represents water companies, said the 36% increase would provide “much-needed” investment for the sector.

However, companies are facing increasing scrutiny and public anger over their environmental and financial performance, as well as executive bonuses and pay.

Households in England and Wales are generally billed for water in one of two ways:

• unmetered customer Pay a set amount for your water and sewage services, regardless of how much water they use. This is usually based on their home valuation – the estimated annual rental value of a property.
• metered customers Pay only for what they use. They have water meter readings collected by the water company

All households also pay for sewerage services, either as part of their water bill or separately, if their water company does not provide waste water services.

Use less water: Many water companies provide free water-saving devices to customers. Keep an eye out for unexpected increases in your bills – this could mean there is something wrong with your bill.

Get a water meter: Meters can reduce bills for some. Every family can apply to establish it. If a meter doesn’t fit, the water company should offer something called an “assessment fee” which can also save you money.

Go to social tariff: If you are on a low income each water company offers a plan that can help reduce your bills but each company has different rules.

Sewage Service Exemption: Households may be able to obtain rebates for some sewage services if they can prove they do not use them.

Before the price increase was announced, the Water Consumers Council (CCW) surveyed 9,500 households in 19 water company areas and found:

• 18% were already struggling to pay their bills
• 40% will find it difficult to pay more

CCW chief executive Mike Keel warned Significant price increases will put “unbearable pressure” on the finances of millions of people,

Water UK said companies want to provide more support to customers, but they need more investment to improve services.

Record numbers asked for help with their bills in 2023-2024, According to data seen by the BBC,

The amount of financial assistance available and eligibility criteria vary by company.

CCW wants all companies to have the same plan so everyone, no matter where they live, gets the same help.

As part of its pricing review, Ofwat sets performance targets to encourage water companies to meet their commitments to customers and the environment.

They are expected to reduce leakages, pollution incidents and sewer flooding.

If a company meets its goals it may receive financial rewards. If he does not live up to them he may have to face punishment.

Companies reflect these costs in annual adjustments to customer bills.

In 2024-25, water companies will have to Pay £114 million,

A very small number of Scottish homes have water meters. However, most people pay for water and sewerage services as part of their council tax, with charges linked to their council tax band.

average bill According to Scottish Water, there will be an increase of £35.95 in 2024/25.

Someone living in a Council Tax Band C property will pay an average of £485.68 for water and sewerage services.

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