Environment minister Emma Hardy said she understands the public’s anger, after five water firms were provisionally granted permission to raise their bills by between 1% and 5%.
PA Media reports Hardy said: “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.
“We are laser focused on helping ease the cost of living pressure on households: we’ve frozen fuel duty, raised the minimum wage and pensions and brought down mortgage rates – putting more money in people’s pockets.”
Five companies – Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water – argued that Ofwat’s original decision left them unable to meet the regulatory requirements set out for them.
The Competition and Markets Authority (CMA) said Anglian and Northumbrian should be allowed to increase their bills by a further 1%, Southern by 3%, South East by 4% and Wessex by 5%.
Kirstin Baker, who chaired the independent group of experts appointed by the CMA to consider the price controls, said: “We’ve found that water companies’ requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified.”
Meanwhile Mathew Lawrence, Director of the thinktank Common Wealth, said “Water bills are going up yet again. But how much of this will fund much-needed investment?
“Almost a third of the typical bill currently goes to paying dividends or interest payments. Hard pressed households are paying more for basic essentials so investors can profit. Only public ownership can end the rip off and ensure bills fund investment.”
