Water Charges Soar

Water bills in West Kent are to rise by around 50% over the next five years.

The regulator OFWAT made the announcements on Thursday.

OFWAT says "We should see the sector produce enough extra water supply to meet the needs of nearly three million people".

Customers in the West Kent area pay for wastewater to be treated by Southern Water, who's bill will rise by 53% plus inflation.

Southern Water customers will experience the biggest rise in the cost of bills of all eleven water and wastewater companies

Southern Water's bills on average will rise from £420 to £ 642 - that's a £ 222 increase.  A further £20 could be added later.

Customers in West Kent are charged on the same bills by South East Water for their fresh water supply. South East Water's share of the bill will rise by 24%.  That's from an average of £ 230 to £ 287 - or a rise of £57 by 2030.

Bills will rise in stages around 10% above inflation every year.

Southern Water promises to reduce storm overflow spills by 38% on 2021 levels, with over £ 1 billion of investment.

South East Water promises a £160 million boost to water supply, reduce water use and expand metering. It also promises to reduce leakage by 27%.

Southern Water says on its website that since 2020, bills were reduced (by around 6% per year) because of penalties from regulators, resulting in rebates on bills.

Its website says: "Our shareholders paid for this, not customers. They have invested nearly £2 billion (since 2021) to speed up improvements to your services – that’s around £1,500 per household over the past five years. At the same time, we haven’t paid our shareholders anything since 2017". 

Southern Water also states: "In the last 10 years the average water and wastewater bill has gone from £437 to £439, that’s an increase of just 0.5%. Over the same period, inflation has gone up by 33%, energy bills by 43% and council tax 48%".

More at:

https://www.southernwater.co.uk/help-and-support/why-is-my-bill-going-up/

The water regulator OFWAT's announcement on 19th December states states:

"The water sector is at a critical juncture. It is clear that the public wants, and rightly expects, better service and lasting environmental improvements. The sector needs to reduce pollution, improve resilience, adapt to climate change, and work towards net zero emissions. It is time to deliver on all of these challenges. Our PR24 final decisions support record levels of spending by water companies: £104 billion over the next five years.

"This gives the sector the opportunity for transformation, delivering better outcomes for customers and the environment. It will also help unlock critical new infrastructure across England and Wales, boosting local growth. We are backing every single environmental project that companies have agreed with their environmental regulators. At the same time, we have thoroughly challenged cost estimates to get the best possible value for customers. This is especially important as, to help fund the upgrades, most bills will have to go up.

"By 2030, we expect this investment to bring tangible improvements. We should see the sector produce enough extra water supply to meet the needs of nearly three million people. We have also challenged companies to deliver the lowest leakage levels since privatisation. We expect spills from storm overflows to be reduced by over 45% from 2021 levels. Drinking water, which is already among the cleanest in the world, should continue to get even better.

"Water companies should deliver this change, but everyone will play a part. Ofwat will hold companies to account to meet the challenge the sector faces. And we will continue to adapt how we regulate, to enable the change required. Investors will contribute to a significant expansion of capital programmes, and most customers will be asked to pay more. As stewards of a public service, water companies will need to change their culture, striving for the best performance for customers and the environment."