Millions Face Higher Water Bills After Regulator Approves Hikes

Published: 09 October 2025. The English Chronicle Desk. The English Chronicle Online.

Millions of households in England are set to face bigger-than-expected increases in water bills after the Competition and Markets Authority (CMA) approved rises for five major suppliers, while rejecting the bulk of their original requests.

The CMA-appointed independent expert panel allowed Anglian, Northumbrian, Southern, Wessex, and South East Water to charge customers an additional £556 million over the next five years. This represents only 21% of the £2.7 billion collectively requested by the companies. Together, these firms serve around 14.7 million households across the country.

The water sector has become increasingly controversial in recent years, with public outrage over repeated sewage leaks into rivers and coastal waters. Water minister Emma Hardy acknowledged the public’s frustration, saying, “I understand the public’s anger over bill rises – that’s why I expect every water company to offer proper support to anyone struggling to pay. We’ve made sure that investment cash goes into infrastructure upgrades, not bonuses, and we’re creating a tough new regulator to clean up our waterways and restore trust in the system.”

Water prices in England and Wales are set over five-year periods by Ofwat, which oversees mostly privately owned regional monopolies. Ofwat projects that average annual household bills could reach £597 by 2030—a 36% increase—helping fund a total of £104 billion in investment for infrastructure and improvements.

The CMA panel’s decisions significantly curtailed the companies’ requested increases. Anglian Water asked for an average bill of £649 but was granted £599, a 1% rise. Northumbrian Water requested £515, was allowed £495. South East Water sought £322 but received £286, a 4% increase. Southern Water requested £710 but received £638, and Wessex Water’s requested £642 was allowed at £622, the largest proportional increase at 5%.

Kirstin Baker, chair of the CMA expert group, said, “We’ve found that water companies’ requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified. We understand the real pressure on household budgets and have worked to keep increases to a minimum, while still ensuring there is funding to deliver essential improvements at reasonable cost.”

The decision will also influence Thames Water, Britain’s largest supplier, which serves 16 million customers. Thames paused its appeal as it negotiates a restructuring plan with Ofwat to manage debt and avoid potential government intervention. The company is reportedly considering requesting an additional £4 billion to improve performance and reduce pollution risks.

The CMA ruling reflects a careful balance between protecting consumers from excessive price rises and ensuring sufficient investment in the country’s ageing water infrastructure, amid mounting scrutiny of the industry’s environmental record.