Five water companies to further increase bills with biggest rise for Southern Water

Five water companies are to further increase bills as part of a new £3.4bn infrastructure investment.

The greatest annual bill rise is faced by customers of Southern Water - which covers Hampshire, the Isle of Wight, Sussex and Kent - where there is a proposed £43 increase next year.

Wessex Water billpayers are to be charged the second-biggest yearly uplift - £4 from mid next year, rising to £7 more than current bills by 2030.

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Customers of both Severn Trent and the UK's biggest water company, Thames Water, are subject to an initial £3 rise on yearly bills from 2027, which will go up an extra £2 in 2029, making a £5 add-on.

The smallest rise will be levied by South East Water, charging an extra £1 in the 2029 to 2030 financial year.

Permission to up bills, however, is provisional and no final decision has been made on the sums. Public consultation on the measures is now open and will run until 24 September.

Water bills are also influenced by factors such as inflation, so prices could rise or fall regardless.

More money for criticised companies

Some of the companies hoping to charge more have attracted criticism in recent years and all have already upped annual bills far above the rate of inflation.

Two of the companies - Southern Water and Thames Water - along with a third, Yorkshire Water, were responsible for 81% of all serious pollution incidents, according to most recent Environment Agency figures, covering 2024.

Southern Water and Thames Water both attracted criticism for plans to pay executives large sums. As Thames Water teeters on the brink of collapse, owing billions of pounds, it handed a £1m signing-on fee to its finance chief last month.

All water utilities require approval for their spending and revenue-raising from regulator Ofwat.

In July last year, a Southern Water spokesperson said: "Our CEO's salary and benefits are decided by the remuneration committee, with a majority membership of independent non-executive directors, and following protocols and rules set out by Ofwat and in accordance with the law."

What's happened?

The companies have been allowed to up customer charges to fund development beyond those increased in December 2024 when the last programme of developments was announced.

Ofwat said the projects are to create a safe and reliable water supply, support new housing, business growth, and better environmental outcomes.

The bill rises are largest for Southern Water customers as the utility requested £1bn of funds for projects like water recycling and water resilience.

Other infrastructure developments around the country include data centres in Manchester, the creation of additional water capacity for guests at Flag Fen in Peterborough and tourism at Newquay.

Requirements around forever chemicals from the Drinking Water Inspectorate have also meant Wessex Water are bringing forward works at a water treatment site.

(c) Sky News 2026: Five water companies to further increase bills with biggest rise for Southern Water