Households’ water bills will rise to around £473 a year to fund firms’ record investment to reduce sewage in rivers and seas.
Campaigners have hit out at the firms, whose bosses receive millions in bonuses, for hiking customers’ bills from April to fund the £14.4 billion investment.
Undertones star Feargal Sharkey blasted the announcement, calling it “smoke screen and mirrors.”
The keen angler, 65, said they have a continued history of being profiteers, with water company bosses receiving over £25 million in bonuses and incentives since the last general election.
Mr Sharkey blasted their “greed, incompetence and exploitation” of customers.
Wessex Water and Anglian Water are at the top end of the scale, with average bills set to increase to £548 and £529 respectively, while Northumbrian customers will see the lowest average bills of £422.
The rise comes amid ongoing regulatory concern over dividends paid out by water firms to shareholders amid the cost-of-living crisis and public fury about sewage overflows into waters.
James Wallace, chief executive of River Action UK, said: “While support for lower income households is welcome, when the water industry says £14.4 billion will be invested by water companies what they really mean is most of the money will be paid by customers, again.
“Ultimately the Government is to blame for allowing water companies to profiteer while manipulating water pricing downwards over the past 14 years, creating a false illusion of cheap water, without even considering the costs of inflation.
“The suggestion that customers should pay more for water will be a very tough message to sell when the bills they have already paid water companies have been squandered on shareholder dividends and CEO bonuses rather than investing in maintaining leaky infrastructure.
“Why should the public pay twice for the modernisation and maintenance of sewage treatment and water resources? What assurances will the Government provide to ensure customer money is actually spent on promised water security and cutting pollution? Having overseen corporate daylight robbery for years, rebuilding trust will be key.”
Water UK said bills were rising less than they did in the previous financial year, and argued that they would be around £60 higher today if they had kept pace with inflation since 2014.
The money raised from higher bills would help to build 10 new reservoirs, increase the capacity of dozens of wastewater treatment works and see more than 2,000 kilometres of pipes repaired and replaced, it said.
Companies would also increase support for low-income households to its highest level.
David Black, Ofwat CEO said: “Over the last few years, the Covid-19 pandemic and the cost of living crisis have had a significant impact on household’s finances.
“While water bills will vary depending on the circumstances of each household, the average increase forecasted for 2024/25 will be £27.40, equivalent to about £2.30 a month.
“We are very aware, for those who are already struggling, this will be a real worry. As such, water companies must do all they can to protect those who are most in need of a helping hand.”
