Water bills set to rise 30% for small businesses

Small businesses in England and Wales are facing a near 30% increase in water bills by 2030, as water suppliers are accused of passing on the costs of ‘historic errors’ made by industry leaders.

Water industry regulator, Ofwat anticipates average wholesale charges for non-household customers, including small firms and charities, to rise by approximately 27% over the next five years. 

In a letter to the Federation of Small Businesses (FSB), Ofwat stated water companies would be allowed to raise bills to enable a trebling of investment to ensure future water supplies and safeguard the environment, as the industry confronts continued anger over discharges of raw sewage into waterways.

Shaun Kent, Director for the Business retail market at Ofwat, nsaid  “We have protected customers by keeping price increases fair for current and future customers, ensuring companies do not overcharge for this vital investment. Shareholders will also need to play their part and are expected to invest £7bn of new equity.”

Tina McKenzie, the policy chair at the FSB, said “Historic errors in management, decision-making and performance targets by water companies are now being shunted on to small business and domestic household bills, at a time when the costs of doing business are already high. While investment and reform are critical to creating a good water and wastewater system, there needs to be a better balance struck between how the necessary funds are raised, so unavoidable bills – like water – are affordable and the system works as it should.”