Sector urges customers to seek support as water bills creep up

Combined water and sewerage bills for 2022/23 will rise by £7 to an annual average of £419 while water-only bills will be an average of £4 more from April.

The average increase of 1.7% on combined water and sewerage bills is below inflation but prices vary across England and Wales, with some customers seeing a hike of up to 10% or a fall of 6%.

South West bills remain the sector’s highest at £472, down from £503 last year. Hafren Dyfrdwy’s customers will pay the least this year at £334, up from £316 last year.

The sector and its regulators have urged customers to seek support if they are struggling to pay their bills. Ofwat and CCW expressed concerns that awareness remains low among billpayers of the assistance available from their water company.

David Black, Ofwat interim chief executive, said the regulator expects water companies to play their part in supporting customers. “Our research shows that only 15% of customers know about the financial help available to them, and just 3% are actually getting financial support from their water company.

“But this isn’t just about the bills. Companies need to demonstrate they are providing great value with excellent service to customers while at the same time caring for our environment, responding to the real concern about their impact on our rivers. Customers are looking for more from their water company and they should rise to meet those expectations.”

People living in South West, Southern, United Utilities and Yorkshire’s regions will see costs fall, while billpayers of Anglian, Hafren Dyfrdwy, Northumbrian, Severn Trent, Thames and Wessex will see an increase. For Welsh Water customers, bills will be static this year.

Bournemouth’s bills will fall by £2 to £142 and Cambridge’s remains static at £148 but customers of other water-only companies will see rises.  People living in Essex and Suffolk’s catchment will have the highest bills following a £23 increase to £246. Despite a £6 increase, Portsmouth’s bills will remain the lowest of the water-only companies at £109.

A key focus of Ofwat’s 2019 price review was driving down costs to keep bills affordable. Four companies sought an appeal of their final determination from the Competition and Markets Authority (CMA), which permitted higher bills than the regulator had set. Bristol’s prices have risen £13 to £202 for the year; while combined water and sewerage bills at Anglian are £22 higher at £452, Northumbrian’s prices are up by £35 to £365 and Yorkshire’s have fallen by £6 to £419.

Research by CCW showed only one in six customers who cannot afford their bill are getting the financial support they need. Chief executive of the watchdog, Emma Clancy, said: “Any increase in water bills will be unwelcome for the millions of households already buckling under the pressure of other rising costs. Covid-19 has also made it even harder for people to anticipate how much water they will use at home – that’s why it’s vital customers take advantage of untapped support.”

Jess Cook, water poverty programme lead at National Energy Action (NEA), added: “With the rate of inflation rising, a rise in water bills was expected, but that doesn’t make it any easier to take. Following yesterday’s announcement of a 54% rise in the energy price cap, millions of households are worried about how they will cope in just two months’ time, and this is just making the problem harder.”

“We know from previous research that up to 41% of those struggling the most would bathe less, and almost a quarter would cut back on food or personal hygiene products, in order to reduce, or pay for, their water bill. With some water customers being hit harder than others, targeted intervention is vital to stop the otherwise inevitable spiral of people falling into destitution.”

The cost of living crisis and how utilities can respond to it will be a key part of the debate at Utility Week’s Customer Summit on 16 & 17 March. Find out more here.