The Competition and Markets Authority has provisionally approved higher charges for five English water suppliers on a far smaller scale than requested.
An independent CMA panel said Anglian, Northumbrian, Southern, Wessex and South East Water can collectively recover an extra £556 million over the next five years, about 21% of the £2.7 billion they sought. Together they serve 14.7m people. On average, bills at these firms will rise by around 3%, on top of the 24% uplift already permitted.
The companies appealed to the CMA in February, arguing they needed more money to meet environmental standards. Water bills have become politically sensitive amid public anger over sewage discharges and leaking infrastructure.
Ofwat, which sets price limits in five-year cycles, previously warned average household bills could climb by 36% to £597 by 2030 to fund £104bn of investment. The CMA largely upheld Ofwat’s position, rejecting most new activities and projects, but it did allow higher returns for investors to reflect persistently high interest rates.
Company-specific outcomes were trimmed across the board. Anglian asked for a 10% rise to £649; the CMA allowed £599, roughly 1%. Northumbrian sought £515, or 6%, but was granted £495, about 1%. South East Water requested an 18% rise to £322 and will get 4% to £286. Southern wanted 15% to £710 and will receive 3% to £638. Wessex sought 8% to £642 and was awarded 5% to £622.
Ministers urged firms to support struggling customers, while consumer advocates warned that any further rises would be poorly received.
Talk to us about your finances.
