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Water bills to rise by £31 per year over next five years Water bills to rise by £86 on average next year
(31 minutes later)
Water bills are set to rise by an average of £31 per year over five years from April, the industry regulator has said. The average water bill will rise by an average of £86 from April, the industry regulator has said.
The increase is higher than the £19 per year Ofwat proposed in July, but is lower than water companies had requested. The steep rise is part of bill increases in England and Wales over the next five years to pay for supply infrastructure upgrades and to reduce sewage discharges, Ofwat said.
Ofwat said the increase was enough for water companies in England and Wales to pay for upgrades and reduce sewage discharges. The cost increases overall are higher than the regulator had proposed in July, but are lower than water companies had requested.
However, the £31 rise is before inflation has been added so actual bills are likely to be higher. Water UK, the trade body for water firms, said the price increases provided "much-needed" investment for the sector.
The water industry has faced fierce criticism in recent years over leaks and sewage discharges into rivers. The water industry has faced fierce criticism in recent years over pipe leaks and sewage discharges into rivers. Many firms, including the UK's largest supplier, Thames Water, are struggling financially.
But Ofwat said higher bills would pay for £104bn upgrade for the sector. Over the next five years, the increases in water bills will average out to £31 per year, but Ofwat said firms are expected to hike tariffs by a higher amount in the first year.
However, the bill hike averages have been calculated without inflation, meaning actual bills are likely to be higher.
David Black, Ofwat chief executive, told the BBC the investment will "deliver significant reduction in sewage spills, further reductions in leakage, and drive up service for customers".David Black, Ofwat chief executive, told the BBC the investment will "deliver significant reduction in sewage spills, further reductions in leakage, and drive up service for customers".
The bill hike varies by region. Southern Water customers will be hit by the biggest increase, with bills going up 53% - £642 on average - by 2030. A total of £104bn is to be spent on upgrades for the sector, which Ofwat said would deliver "cleaner rivers and seas and secure long-term drinking water supplies for customers".
Southern Water supplies to thousands of homes are currently disrupted, with more than 58,000 properties impacted. Bill hikes varies by region. Southern Water customers will be hit by the biggest increase, with bills going up 53% - to £642 on average - by 2030. Wessex and Northumbrian Water bills will rise by the smallest amount - 21%.
Wessex and Northumbrian Water bills will rise by the smallest amount - 21%. The announcement of bills rising for Southern Water households comes as supplies to thousands of homes are currently disrupted, with more than 58,000 properties impacted.
Thames Water, which is struggling under a huge debt pile, will be able to charge customers 35% more, with bills going up to £588. Thames Water, which is struggling under a huge debt pile, will be able to charge customers 35% more, with annual bills going up to £588.
'We don't trust companies to spend our money in the right way''We don't trust companies to spend our money in the right way'
Rebecca Sinker, member of the Clean Water Action Group in Hastings, said the group had been getting bacteria readings "way of the scale in terms of safety" in the sea. Rebecca Sinker, member of the Clean Water Action Group in Hastings, said the group was "angry" about costs going up, arguing the water company there, Southern, had not been "keeping up with the infrastructure maintenance".
She said the area, which is covered by Southern Water, relied on the sea for its fishing and tourist industry. "We don't trust them to spend our money in the right way, and we can't go anywhere else for our water. It's a private company monopoly," she said.
"They haven't been keeping up with the infrastructure maintenance and that's why we're angry about the cost of bill rises," she said. Ms Sinker said the group had been getting bacteria readings "way off the scale in terms of safety" in the sea, which was important for the area's fishing and tourist industries.
"We don't trust them to spend our money in the right way, and we can't go anywhere else for our water. It's a private company monopoly".