A proposed average 21% hike in bills in England and Wales won’t be enough to address problems including sewage leaks, water firms have warned.
The firms are in a standoff with regulator Ofwat over proposed bill rises.
Ofwat has said it wants firms to limit rises to an average of £19 per year until 2030.
But water companies hit back saying the regulator had “got this wrong” and warned the bill rises wouldn’t be enough to “deal with the water shortages we know are coming”.
Although the proposed average rise will put more pressure on households, it is a third less than the amount requested by water companies.
The bill hike is intended to fund investment for improvements such as replacing leaking pipes and reducing sewage discharges into rivers and seas.
It comes as suppliers face increasing scrutiny over their environmental and financial performance over the past years, as well as anger over executive pay.
The bill hike varies by region, with Thames Water customers facing an increase of £99 or 23% over the nest five years, Anglian customers looking at £66 or 13%, and Southern Water customers facing £183, an increase of 44%.
The proposed bill rises can be challenged by the water firms, with a final determination due at the end of the year with increases set to take place from April.
David Henderson, chief executive of industry group Water UK, told BBC business editor Simon Jack: “We think they’ve [Ofwat] got this wrong.”
“This is an unrealistic and unfair decision from Ofwat and our economy and environment will pay the price,” he said.
A spokesperson for the lobby group said the proposed plans were “the biggest ever cut in investment.”
“As a direct result, more housing will be blocked, the recovery of our rivers will be slower and we will fail to deal with the water shortages we know are coming,” the spokesperson said.
Labour has pledged a crackdown on the industry, promising consumers higher compensation for sewage failures and the power to hold executives to account.
The new Secretary of State for Environment Food and Rural Affairs, Steve Reed, is meeting water company bosses on Thursday to discuss performance issues and ways of improving it.
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