Water bills are projected to increase by around 30% in the next five years, according to a significant report aiming to reform the struggling industry. Sir Jon Cunliffe, a former Bank of England chief, highlighted a substantial surge in customers’ bills in the past year. Water UK has already cautioned that the national average water bills for the upcoming year (2025-26) are expected to climb by £123, equivalent to a 26% increase, translating to approximately £10 per month.
Sir Jon emphasized on BBC Breakfast that there will be a real-terms rise of over 30% in water bills over the next five years due to unavoidable factors such as increasing costs of water production, wastewater management, climate change, higher environmental standards, demographic pressure, population growth, and the necessity to upgrade aging infrastructure. He explained that the sudden transition from insufficient investment to extensive investment to catch up has been a driving force behind the substantial bill escalations witnessed.
Addressing the need to support vulnerable individuals and manage the heightened water costs over an extended period, Sir Jon stressed the crucial role of regulators in promoting efficiency and incentivizing companies to operate more efficiently. These remarks coincided with the release of over 80 recommendations from the long-anticipated Independent Water Commission established by the Labour government.
Sir Jon proposed the replacement of the current regulator Ofwat, criticized by Environment Secretary Steve Reed, with a more cohesive and influential single integrated water regulator as part of the recommendations.
The current water system has faced severe criticism for its oversight of water companies, which prioritized shareholder payouts and accumulated significant debts while neglecting aging infrastructure and witnessing a surge in sewage spills. Water minister Emma Hardy echoed the sentiment that the water system is flawed and consumers have been consistently let down. She supported the findings of the Independent Water Commission, calling for comprehensive reforms to rectify the crisis. Emma Hardy expressed concern over the 26% increase in water bills, attributing it to the deteriorating infrastructure.
Disclaimer: This website uses cookies to enhance user experience and to analyze site usage. By continuing to use this website, you agree to our use of cookies as described in our Privacy Notice and Terms and Conditions.