Hard-hit residents could see water bills rise by up to £183 in five years
Cash-strapped residents in the Portsmouth area could see their water bills increase.
Proposals have been announced for Southern Water and Portsmouth
Water to increase water bills over the next five years.
Regulator Ofwat put together the draft plans, which would see Southern Water customers face a £183 increase over five years.
The bills are due to rise from £420 in 2024/2025 to £603 in 2029/30.
Portsmouth Water customers will see their bills jump from £114 in 2024/2025 to £135 in 2029/2030.
Ofwat chief executive David Black said: “Customers want to see radical change in the way water companies care for the environment.
“Our draft decisions on company plans approve a tripling of investment to make sustained improvement to customer service and the environment at a fair price for customers.
“These proposals aim to deliver a 44 per cent reduction in spills from storm overflows compared to levels in 2021. We expect all companies to embrace innovation and go further and faster to reduce spills wherever possible.”
A Water UK spokesman said the announcement was “the biggest ever cut in investment by Ofwat”.
He added: “If it doesn’t put this right, Ofwat will be repeating the mistakes of the past. As a direct result, more housing will be blocked, the recovery of our rivers will be slower and we will fail to deal with the water shortages we know are coming.
“Water companies are ready to invest in an unprecedented overhaul of the country’s water and sewage infrastructure. Ofwat now needs to let them get on with it.”
Mike Keil, chief executive of the Consumer Council for Water (CCW), said millions across the UK will “feel upset and anxious” over the price hikes and will “question the fairness of them given some water companies’ track record of failure and poor service”.
The proposals are part of the 2024 Price Review (PR24) and cover the period from April 1, 2025 to March 31, 2030, ahead of a final decision at the end of the year.
Stuart Ledger, Southern
Water’s chief financial officer, said: “Since submitting our business plan in October, we have continued to engage with stakeholders and customers, to feed into Ofwat’s process.
“We are now reviewing Ofwat’s Draft Determination, and we will publish our response on August
28, ahead of Ofwat’s
Final Determination in December.”
Southern Water said the price increases will be used to cut storm overflows, reduce leakage, put a stop to pollutions, and make sure water supplies are robust for years to come.
It added that investment is key to raising environmental standards, and bills need to be gradually increased over the next five years to face challenges posed by rising costs, inflation, climate change, population growth and other issues.
In response to why the company is planning to increase bills by a larger rate than other companies, Southern Water said the average combined water and wastewater bill has increased by only £2 in the past 10 years in nominal terms, charging less than others.
It added that drastically cutting storm overflows across coastlines will take time and a lot of money to tackle.
Portsmouth Water has been approached for comment.
These proposals aim to deliver a 44 per cent reduction in spills from storm overflows