UK Water Bills to Rise Further as Competition Watchdog Approves Partial Increases
Millions of households in England face higher-than-expected water bills after the Competition and Markets Authority (CMA) agreed to allow five major water companies to raise charges — though far less than they had requested.
The CMA’s independent expert panel provisionally approved an additional £556 million in revenue over the next five years for Anglian Water, Northumbrian Water, Southern Water, Wessex Water, and South East Water. This represents just 21% of the £2.7 billion the firms had collectively sought.
The decision will add roughly 3% on average to customers’ bills, on top of the 24% increase already permitted by the industry regulator Ofwat. Together, the five suppliers serve 14.7 million customers across England.
The companies appealed to the CMA in February, arguing that they required higher charges to meet tougher environmental standards and fund infrastructure improvements.
However, the CMA panel largely rejected funding requests for new projects beyond those approved by Ofwat, though it did allow slightly higher returns for investors to reflect persistently high interest rates.
A breakdown of the ruling shows:
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Anglian Water sought a 10% rise to £649 but was allowed 1%, taking the average bill to £599.
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Northumbrian Water asked for a 6% rise to £515 but received 1%, raising bills to £495.
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South East Water sought an 18% rise to £322 but was permitted 4%, lifting bills to £286.
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Southern Water requested a 15% increase to £710 but was granted 3%, taking bills to £638.
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Wessex Water sought an 8% rise to £642 and received the largest proportional increase, 5%, to £622.
The ruling comes amid mounting public anger over the performance of UK water companies, accused of widespread pollution of rivers and seas through untreated sewage discharges.
While Ofwat regulates prices over five-year cycles, the CMA’s decision highlights the tension between funding environmental upgrades and protecting consumers from rising costs.
In December, Ofwat projected that average household bills could rise by 36% to £597 by 2030, funding a record £104 billion in industry investment.
The watchdog’s ruling follows the appointment of Doug Gurr, former Amazon UK boss, as the new CMA chair under Chancellor Rachel Reeves, as regulators come under increasing pressure to balance economic growth, infrastructure investment, and consumer protection.
