World News of Thursday, 19 December 2024

Source: bbc.com

Water bills to rise by £86 on average next year

Water bills to rise by £86 from April next year Water bills to rise by £86 from April next year

The typical water bill will rise by an average of £86 from April for a year before easing, the industry regulator has said.

The steep rise is part of bill increases in England and Wales over the next five years to pay for supply upgrades and to reduce sewage discharges, Ofwat said.

The cost increases are higher than the regulator had proposed in July, but are lower than water companies had requested.

Water UK, the trade body for water firms, said the price increases will provide "much-needed" investment for the sector.

Over the next five years, the average rise in bills will be £31 a year, but Ofwat said firms are expected to hike tariffs more in the first year.

However, the rises don't include inflation, which means actual bills are likely to be higher.

The water industry has faced fierce criticism in recent years over leaks and sewage being pumped into rivers.

Some firms, including the UK's largest supplier, Thames Water, have financial problems, but there are also concerns some households will struggle to pay.

How much will my water bill rise?

David Black, Ofwat chief executive, said the investment will significantly cut sewage spills, reduce leaks, and ensure customers get a better service.

Some £104bn can be spent on upgrading water systems, which will mean "cleaner rivers and seas and secure long-term drinking water supplies for customers", he said.

Bill hikes vary by region. Southern Water customers will be hit by the biggest increase, with bills going up 53% - to £642 on average - by 2030.

This news comes as supplies to more than 58,000 Southern Water customers are currently disrupted

Wessex and Northumbrian Water bills will rise by the smallest amount: 21%.
The Consumer Council for Water, which helps resolve customer complaints, said the bill rises are "more than many people can afford" with at least two in five households in England and Wales struggling to pay

Social tariffs which give a discount on bills are available, but who actually gets financial help is "a roulette" because each company sets its own criteria for who qualifies, its chief executive Mike Keil said.

Citizens Advice warned that water bill increases could push people further into debt unless struggling households get more support.

Angela Newey, chief executive of Citizens Advice in north and west Kent, said "water is generally an issue" for people who are struggling, and "it's very often the first bill they won't pay".

Thames Water, which is struggling under a huge debt pile, will be able to charge customers 35% more, with annual bills going up to £588 in five years.

The bill rises do not apply to households in Scotland and Northern Ireland, where the water industry is nationalised.

'We don't trust companies to spend our money in the right way'

Rebecca Sinker, member of the Clean Water Action Group in Hastings, said the group was "angry" about costs going up, arguing the water company there, Southern, had not been "keeping up with the infrastructure maintenance".

"We don't trust them to spend our money in the right way, and we can't go anywhere else for our water. It's a private company monopoly," she said.

Ms Sinker said the group had been getting bacteria readings "way off the scale in terms of safety" in the sea, which was important for the area's fishing and tourist industries.

In response, Southern Water said it worked closely with community groups, and that local bathing water quality had improved.

Bonus row

Environment secretary Steve Reed said the government would "ringfence money earmarked for investment", so it can not be used for water bosses' bonuses.

He said "our sewage system crumbled" under previous Conservative governments, and that the public "are right to be angry".

Liberal Democrat environment spokesperson Tim Farron said successive ministers "have watched on while inept water companies have plunged themselves into unprecedented levels of debt, leaving customers to pay the bill".

The Conservatives have been approached for comment.

What to do if I can't pay my water bill?

Individual water companies offer a range of options to customers who are struggling to pay their bill, including debt support programmes, financial hardship funds or payment breaks.