Six major water firms including Thames Water want to hike bills even higher
Six major water firms including Thames Water have launched a bid to charge customers even more than already agreed by the industry regulator.
Water regulator Ofwat is already allowing water firms to increase bills by an average of £157 over the next five years – a rise of 36%. But now, six water firms – Thames Water, Southern Water, Anglian Water, South East Water, Northumbrian Water and Wessex Water – have launched an appeal to the Competition and Markets Authority (CMA) to try and raise bills even higher.
Thames Water had already been allowed a 35% increase to average bills over the next five years, but previously said it wanted a 53% increase. Southern Water has been approved a 53% rise, Anglian Water is being allowed to increase bills by 29%, South East Water has been granted 24%, and Northumbrian Water and Wessex Water bills are going up by 21%.
It comes after a High Court judge this week allowed Thames Water to borrow £3billion so it can avoid collapse. Thames Water, which has at least £16billion of debt, had previously warned it was on the verge of collapse and only had enough money to keep running until March 24.
David Henderson, chief executive of Water UK, said: “Water companies need to invest billions to strengthen and expand infrastructure to support economic growth, secure our water supplies and end sewage entering our rivers and seas.
“Although many water companies can live with Ofwat’s decisions, an unprecedented six – serving the majority of customers in England – feel that they have no choice but to appeal to the Competition and Markets Authority. Companies hope it will overturn Ofwat’s decisions so they can get on with the job of helping deliver the Government’s overriding national priority – economic growth.”
Chris Walters, Senior Director for the Price Review at Ofwat, said: “As part of the standard process underpinning our price reviews, it is the right of companies to request a redetermination by the CMA. We will be re-stating our case as part of this process.
“Our PR24 final determinations unlock a quadrupling of investment by the sector. This will accelerate the delivery of work to deliver cleaner rivers and seas – as well as securing long-term drinking water supplies for customers. Final determinations were based on a robust examination of all funding requests made by companies to ensure every pound of customer bills provides value for money, delivers real improvements and enables the sector to attract the investment it needs.”
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