Millions of UK households face further increases in their water bills after five major companies were provisionally authorised to raise charges by up to 5% more than previously allowed. The Competition and Markets Authority (CMA) has agreed to a partial appeal lodged by the firms, citing the need to meet regulatory and infrastructure demands.
The provisional ruling affects customers of Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water, covering around 14.7 million people. While the CMA approved only a fraction of the £2.7 billion requested in additional revenue, the outcome will still translate into noticeable bill increases for affected households.
Watchdog Rules on Appeals Amid Rising Infrastructure Demands
The five suppliers challenged a 2024 ruling by Ofwat, the industry regulator, which had set price limits for the 2025–2030 period. The companies argued that the allowances were insufficient to fulfil legal and environmental obligations, such as improving water quality, preventing pollution, and upgrading ageing infrastructure.
According to the CMA, the companies had requested substantial additional increases: Southern Water, already permitted a 53% rise over five years, appealed for a further 15%; Anglian Water asked for an extra 10% beyond its approved 29%; and South East Water sought 18% on top of the 24% already granted. Wessex Water and Northumbrian Water requested increases of 8% and 6%, respectively.
Following its review, the CMA authorised more modest hikes: 1% each for Anglian and Northumbrian, 3% for Southern, 4% for South East, and 5% for Wessex. This amounts to £556 million in additional revenue, or 21% of the £2.7 billion sought.
Chair of the independent CMA panel Kirstin Baker said the panel found the water companies’ requests for significant bill increases, “on top of those allowed by Ofwat,” to be “largely unjustified.” She added: “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.”
Public Reaction, Political Response and Support Measures
The ruling comes amid heightened public sensitivity to rising household costs. According to the Consumer Council for Water (CCW), 40% of customers served by the five firms say they already struggle to afford their water bills.
Mike Keil, chief executive of the Consumer Council for Water (CCW), said: “CCW’s own analysis suggests there was an opportunity to reduce these five companies’ financing costs, cutting bills by around £41 a year, but instead the CMA has chosen to increase their rate of return.”
He added that many customers are still absorbing the impact of April’s bill rises, and warned there is a risk they “will end up paying more, without seeing any additional improvements in return.” Three of the five companies, he noted, currently have no plans to end water poverty by 2030.
In response, Water Minister Emma Hardy acknowledged public anger and called on companies to provide “proper support” for those struggling. She reiterated government plans to overhaul water regulation and establish a new ombudsman for customer complaints. Customers are encouraged to check eligibility for social tariffs and support schemes such as WaterSure, which caps bills for certain households. According to the CCW, over two million eligible households are not claiming available discounts.
