Millions to receive higher water bills after CMA appeal

Millions of households will have to pay higher water bills than previously announced, after five water companies appealed to the Competition and Markets Authority (CMA) regarding Ofwat’s price determinations.

Five companies – Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water – argued that Ofwat’s decision left them unable to meet the regulatory requirements set out for them. Each of these companies chose to exercise its legal right to request a redetermination of Ofwat’s decision by an Independent Group of experts within the UK’s Competition and Markets Authority (CMA). The disputing companies serve over 7 million household and business customers and have a combined annual revenue of around £4 billion.

They had argued that the price rises set by the sector’s regulator, Ofwat, which average 36% over the next five years, were not enough to deliver the necessary investment in infrastructure.

Chair of the Independent Group, Kirstin Baker, said “We’ve found that water companies’ requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified. We understand the real pressure on household budgets and have worked to keep increases to a minimum, while still ensuring there is funding to deliver essential improvements at reasonable cost.”

Anne Pardoe, Head of Policy at Citizens Advice, said “Ramping up water bills, when people up and down the country are already rationing showers and cutting down on laundry, is going to stretch budgets beyond breaking point.

“With a staggering one in five of households already struggling to cover their water bill in the last year, and more than two fifths (42%) of those cutting back on groceries and energy as a result, we need better bill support as a matter of urgency.

“Long overdue and much-needed investment in the sector can’t come at the cost of low-income households being pushed into hardship. The government needs to create a national social tariff, with eligible households automatically enrolled so that none miss out on this vital support.”

Indicative impact of our provisional determinations on annual customer bills:

Water company	Average water bills under Ofwat’s price review for 2025-30	Average water bills requested by the 5 water companies	Average water bills under CMA’s provisional decision
Anglian Water	£591 (20% higher than bills for 2024 to 2025)	£649 (10% increase compared to Ofwat’s decision)	£599 (1% increase compared to Ofwat’s decision)
Northumbrian Water	£488 (16% higher than bills for 2024 to 2025)	£515 (6% increase compared to Ofwat’s decision)	£495 (1% increase compared to Ofwat’s decision)
South East Water	£274 (18% higher than bills for 2024 to 2025)	£322 (18% increase compared to Ofwat’s decision)	£286 (4% increase compared to Ofwat’s decision)
Southern Water	£620 (48% higher than bills for 2024 to 2025)	£710 (15% increase compared to Ofwat’s decision)	£638 (3% increase compared to Ofwat’s decision)
Wessex Water	£594 (17% higher than bills for 2024 to 2025)	£642 (8% increase compared to Ofwat’s decision)	£622 (5% increase compared to Ofwat’s decision)