Yorkshire Water set to increase bills by 41 per cent over next five years
Yorkshire Water has been given the go-ahead to increase household bills by 41 per cent over the next five years, as water companies across England and Wales raise their prices.
The move will see the company raise household bills by an average of £177 by 2030.
Ofwat, the water services regulator, announced today that household bills across England and Wales will increase by an average £31 a year over the next five years, rising by a total of £157 by 2030. This marks an average 36 per cent rise between 2025 and 2030.
Ofwat said the increase would pay for a £104 billion upgrade of the water sector to deliver “substantial, lasting, improvements for customers and the environment”.
The regulator said that on average, its final decision on the bill increases means that bills are £8 per year lower than what companies had previously proposed.
Households across England and Wales will face an average price rise of £86, or 20 per cent, in the next year, with a smaller percentage increase in each of the next four years.
Ofwat chief executive David Black said: “Today marks a significant moment. It provides water companies with an opportunity to regain customers’ trust by using this £104 billion upgrade to turn around their environmental record and improve services to customers.
“Water companies now need to rise to this challenge, customers will rightly expect them to show they can deliver significant improvement over time to justify the increase in bills.”
“Alongside the step up in investment, we need to see a transformation in companies’ culture and performance. We will monitor and hold companies to account on their investment programmes and improvements.
“We recognise it is a difficult time for many, and we are acutely aware of the impact that bill increases will have for some customers. That is why it is vital that companies are stepping up their support for customers who struggle to pay.
“We have robustly examined all funding requests to make sure they provide value for money and deliver real improvements, while ensuring the sector can attract the levels of investment it needs to meet environmental requirements.
The move comes as the water industry faces significant challenges.
In August, Ofwat proposed fines totalling £168m against Yorkshire Water, Thames Water and Northumbrian Water. The regulator proposed a £47m fine against Yorkshire Water.
Speaking after today’s announcement, Environment Secretary Steve Reed said: “Under the Conservatives, our sewage system crumbled. They irresponsibly let water companies divert customers’ money to line the pockets of their bosses and shareholders.
“The public are right to be angry after they have been left to pay the price of Conservative failure.
“This Labour Government will ringfence money earmarked for investment so it can never be diverted for bonuses and shareholder payouts. We will clean up our rivers, lakes and seas for good.”
Tom MacInnes, director of policy at Citizens Advice, said: “These price rises will hit many households hard. While it’s encouraging to see help for customers increasing, the current dysfunctional approach to bill support in this industry means that people will continue to miss out."