• [Dailystar Icon]
• News
• UK News
• In the News

Fury after five Brit water companies blow 32m putting customers bills even higher

The companies appealed to allow them to add another 2.2% on to our bills - raking in an extra 463m but bill payers say they deserve 'prison sentences'

[Water companies have found another way to stiff us]

Water companies have found another way to stiff us(Image: Getty Images)

Five of Britains water companies blew 32m appealing to be allowed to ramp up customers bills even higher.

Anglian, Northumbrian, South East, Southern and Wessex Water argued regulator Ofwats decision to let them put up prices by an average of 24% before inflation by 2030 was insufficient to cover costs and attract investors.

The appeal to the Competition and Markets Authority - aka CMA - cost Anglian and South East 9m each, Southern 7.6m, Northumbrian 3.7m and Wessex Water 3.1m, according to newly released documents.

The authority spent 5.2m and Ofwat 3.2m - taking the total spent on the appeals process to more than 40m.

The revelation sparked fury from customers. One said: Prison sentences for water company bosses please. Another said: Please just nationalise them.

One more wrote online: A complete pigs breakfast. Ofwat are completely c**p.

[Water dripping]

Water companies' giant appeal bill(Image: Getty)

Someone else suggested: Let them go bust, write off the debt, then re-nationalise for a token 1. Create a new agency (eg British Water) to deliver services at cost price. Also disband Ofwat as its been worse than useless.

UK water companies are regional monopolies which rely on customer bills to cover costs.

Every five years Ofwat sets out how much they can charge. That process costs the companies 250m for the five-year period even without an appeal, according to industry lobby group Water UK.

It argues the system has become overcomplicated and too expensive. In 2024 Ofwat ruled the five companies could impose an average 24% rise.

The firms appealed and last month the CMA allowed them to raise bills by another 2.2% - equating to 463m in extra revenue.

The companies argued Ofwats initial price rise suggestion would mean they would struggle to get investment grade ratings from credit agencies needed to reduce borrowing costs and to avoid breaching the watchdogs licence conditions.

Several water companies are financially stressed after the 16 utilities raised 82bn in debt and paid out 85bn in dividends between privatisation in 1991 and March 2025, according to research by the FT.

According to a previous CMA report 20% of customers bills go towards servicing the debt and providing a return to shareholders.

Thames Water, which is relying on a 3bn loan from creditors to stay afloat, also argued the permitted price increases were too low but has not yet appealed.

[Water bills]

Customers face bigger water bills (stock)

Ofwat has struck an agreement that it can raise bills higher if it can find a supply chain to improve its infrastructure.

A downgrade of Thames Waters debt by rating agencies in 2024 put the utility in breach of its operating licence. It is now receiving extra supervision under Ofwats special measures regime.

A spokesman for Water UK, which represents the industry, said: Ofwats final determinations have been overturned by the CMA is further evidence, if any were needed, that the regulatory system has failed.

The findings come as the Government moves towards creating a new single regulator that brings together the functions of Ofwat, the Environment Agency, Drinking Water Inspectorate and Natural England.

The CMA wants appeal hearings transferred to an appropriately resourced judicial body.

The Government is expected to release a paper outlining a transition plan for the new regulator after the May local elections.

Chris Walters, Ofwats interim chief executive, said: We will reflect on the CMAs decisions and their thorough examination of our final determinations and they will be part of our considerations for the next price review.

[Dailystar Icon]

ENJOYED THIS STORY?

Choose Daily Star as a 'Preferred Source' on Google News for quick access to the news you value.