The latest figures from CCW incorporate changes from the companies, the regulator Ofwat and other bodies including the Environment Agency since their five year plans for the period 2025-2030 were first submitted last October.
The proposed increases include a forecasted inflation rate of 2%, which is line with the Bank of England’s target.
There is a very wide range of proposed bill rises which reflect the very different challenges facing companies in different parts of England and Wales.
The very high figure at Southern reflects major upgrades to water infrastructure that has had serious problems – Hastings St Leonards outages….getting a para from Southern on what they are investing.
Katy Taylor, Southern Water’s chief customer officer, said the company shared “everyone’s concerns about rising payment”, but added “the water needs of our water-stressed region pose a unique set of challenges which require significant investment”.
She said the cash from higher bills would be used to “reduce the use of storm overflows, safeguard water supplies for a rapidly growing population, and protect the environment”.
Southern Water is owned by Australian firm Macquarie who have faced fierce criticism for their period as Thames Water’s biggest shareholder.
In five of the 10 years it owned Thames, the company paid out more in dividends than it made in profits, while debt rose from £2.5bn to over £10bn in the same period.
Macquarie point out that it has recently injected £500m of additional cash into Southern Water.
Water UK, which represents suppliers, said bill rises were “never welcome”, water companies were “massively increasing the level of financial support they offer to customers who struggle pay their bills”.
“Ofwat is currently scrutinising these plans and will only allow investment that is new, necessary and value for money. It will not allow water companies to spend money on anything for which they have already received funding,” the industry body said.
Ofwat will publish a preliminary report on the bill rises it expects to approve on June 12 with the figures finalised in December.
Water services are publicly owned in Northern Ireland and Scotland.
Credit: Source link
