More than half of those who would struggle to pay the higher bills plan to spend less on non-essentials, while 43% would use less water, the survey found. — Bloomberg
LONDON: Thousands of people in England and Wales would spend less on non-essential items or even food to help offset higher water and sewage bills being proposed for 2025.
About 40% of more than 9,500 people surveyed for the Consumer Council for Water and industry regulator Ofwat would find higher bills difficult to afford, according to a new report published.
Water firms said they now need to raise bills by an average of 40% by 2030, though some will need even larger increases.
Southern Water is seeking to lift bills by 84%, while Thames Water wants to see customers pay at least 53% more by the end of the decade.
Ofwat has sought to protect consumers from the knock-on impact of rising investments to fix the utilities’ creaky infrastructure.
In July it proposed to cap bill rises to £19 per year for the next five years. But that level is now expected to be breached in its final decision in December because companies need to make bigger investments and borrowing costs have risen, driven by the crisis at Thames Water.
While the water quality in England is considered excellent and in Wales meets the required criteria, according to a 2023 report by the Chief Inspector of drinking water, concerns have grown in recent years about sewage dumping and the contamination of the country’s public waterways.
The water companies’ decades of under-investment in aging infrastructure had angered voters in this year’s general elections.
The issue remains crucial for the new Labour government as it seeks to drive new investment to fix the crisis while keeping bills low.
More than half of those who would struggle to pay the higher bills plan to spend less on non-essentials, while 43% would use less water, the survey found. At least 38% said they plan to spend less on food and other essentials.
The study surveyed 9,508 bill payers across 19 water companies in England and Wales. — Bloomberg
