Millions of households across England are set to face another water bill hike after the competition regulator approved further price increases for five major water suppliers. The Competition and Markets Authority (CMA) announced its decision on Thursday, allowing companies to raise charges beyond previous limits.
The CMA granted Anglian, Northumbrian, Southern, Wessex, and South East Water permission to collect an extra £556 million over the next five years. This figure represents about one-fifth of the £2.7 billion increase the firms had requested. Despite the partial approval, the move will still mean higher bills for millions of customers.
Together, these five companies supply water to almost 15 million households. The new decision will add roughly 3% to bills, on top of the 24% increase already approved earlier this year. This water bill hike follows months of debate over pricing and environmental standards.
The companies argued they needed additional funds to meet environmental targets and improve infrastructure. However, the CMA panel rejected most of their appeals, saying the requests were largely unjustified. The regulator did allow a small increase to reflect higher interest rates that have affected investor returns.
For example, Anglian Water requested a 10% rise to £649 per year but received approval for only a 1% increase. Southern Water, which serves the south-east coast, asked for 15% but received 3%.
Water Minister Emma Hardy acknowledged public frustration, saying she expected companies to support customers struggling with the higher costs. She emphasized that new investment should go into infrastructure, not bonuses or dividends.
Consumer groups and environmental organizations expressed disappointment with the CMA’s ruling. The Consumer Council for Water warned that customers might pay more without seeing better services. River Action, a campaign group, criticized the ongoing pollution and the lack of accountability among water firms.
Environmental concerns have dominated public discussion in recent years as water companies faced widespread criticism for sewage leaks and poor water quality. Despite promises of reform, activists say the industry continues to fail both people and the planet.
The water bill hike is also expected to add pressure to household budgets already strained by inflation. For many, the announcement renews calls for tougher regulation and greater transparency within the privatized water sector.
The CMA’s decision is likely to influence other utilities, including Thames Water, which is negotiating with Ofwat over a major financial restructuring. With millions now facing higher bills, the debate over fairness and corporate responsibility in the UK’s water industry is far from over.
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