Water companies propose higher bills, regulators intervene

Five water companies in the UK plan to raise customer bills by more than the amount allowed by the regulator, Ofwat. These companies are Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water. Ofwat has referred them to the Competition and Markets Authority (CMA) for a decision. Anglian Water customers will see a 29% increase, while Northumbrian Water and Wessex Water customers will face 21% hikes. South East Water is set for a 24% rise, and Southern Water customers may see a 53% increase. Thames Water has asked to delay its referral to the CMA for up to 18 weeks. According to Ofwat, the companies have not yet fully explained their reasons for the proposed increases. However, they claim they need more funding beyond what was already approved. This means bills could rise even more for consumers starting April 1. Many customers are already worried about these hikes. The water industry has been criticized for issues like leaks and pollution. Over the next five years, the average bill increase is expected to be £31 per year, not including inflation, which could lead to even higher costs. In related news, a £3 billion loan deal for Thames Water is likely to move forward after a court upheld it. This funding is crucial for Thames Water, which supplies water to 16 million households and has significant debt challenges. Water UK, the trade body for the industry, supports the increases, saying they are necessary for investment in the sector.