Five water companies want to hike consumers’ bills more than approved by the regulator, it emerged on Tuesday. Water watchdog Ofwat has referred five firms to the Competition and Markets Authority (CMA) to make a decision.
They include: Anglian Water, Northumbrian Water, South East Water, Southern Water and Wessex Water. Anglian Water customers already face bill hikes of 29%, Northumbrian Water consumers have announced 21% hikes, South East Water is 24%, Southern Water is 53% and Wessex Water is 21%.
Thames Water had requested a reference to the CMA last month but has since asked for the formal reference to the CMA to be deferred for a period of up to 18 weeks. A spokeswoman for Ofwat said while the companies have not yet set out the details of their reasons for appealing, their initial statements highlight the need for “additional funding beyond the substantial increase already allowed”.
This would mean a further increase in bills for customers, she added. The boost in investment means that customers’ bills will increase from 1 April at a time when many customers are already expressing concerns about the level of increase.
The water industry has faced fierce criticism in recent years over leaks and sewage being pumped into rivers. Over the next five years, the average rise in bills will be £31 a year.
But this does not include inflation, which means actual bills are likely to be higher. Water UK, the trade body for water firms, had said the price increases would provide “much needed” investment for the sector.
It comes as a £3 billion loan deal designed to prevent Thames Water from going bust looks set to go ahead after a court rejected several appeals against it.
The plan had originally been approved in the High Court in February, and could give bosses time to find a longer-term source of funding.
In February, a £3 billion funding plan for Thames Water was approved by a High Court judge. The utility company supplies about 16 million households across London and the South East.
But it has at least £16 billion of debt, and had previously warned it only had enough money to keep running until March 24.
Water UK has been contacted for comment.
