Millions of UK Households Face Higher Water Bills

Millions of UK households are set to face higher water bills after five major utility firms were provisionally granted approval to raise prices beyond initial regulatory limits.

The Competition and Markets Authority (CMA) confirmed that, following an appeal, independent experts have permitted Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water to increase their tariffs. The companies argued that Ofwat’s original rulings would prevent them from fulfilling essential regulatory and infrastructure obligations.

Under the CMA’s provisional decision, Anglian and Northumbrian Water can raise bills by an extra 1%, Southern Water by 3%, South East Water by 4%, and Wessex Water by 5%.

Southern Water had already been approved for an average 53% bill increase over five years but requested a further 15%, while Anglian Water — previously granted a 29% rise — sought an additional 10%. South East Water, initially allowed 24%, wanted 18% more. Wessex and Northumbrian were each given 21% originally and asked for an extra 8% and 6%, respectively.

The CMA said the provisional ruling allows for around 21% (£556 million) of the total £2.7 billion in additional revenue the firms had requested.

Kirstin Baker, who chaired the CMA’s independent review panel, stated:

“We found that most of the requested increases, beyond those already approved by Ofwat, were not justified. We recognise the strain on household budgets and have worked to keep price hikes as low as possible while ensuring sufficient funding for necessary improvements.”

According to the CMA, the extra funding will support better water resilience, reduce pollution, and reflect higher financing costs.

In December, Ofwat had already permitted water firms to raise bills by an average of £157 (36%) over five years to finance upgrades to aging infrastructure. But by March, the five companies requested a formal review, claiming Ofwat’s allowances left them unable to meet regulatory standards — triggering a six-month CMA investigation.

Water Minister Emma Hardy responded:

“I share the public’s frustration over rising bills. That’s why I expect companies to properly support customers who are struggling to pay. We’re ensuring investment goes into infrastructure, not executive bonuses, and we’re introducing a tougher regulator to restore trust and clean up our waterways. Our priority remains easing cost-of-living pressures through measures like freezing fuel duty, raising the minimum wage and pensions, and reducing mortgage rates.”