Two water companies serving Wales want to increase their prices by more than 40% over the next five years, new figures show. Hafren Dyfrdwy will ask for a 56% increase, while Dŵr Cymru will ask for as much as a 43% increase in customer bills over the next five years.
Water companies will meet with Ofwat this week to discuss what companies can charge between 2025 and 2030. Companies say price increases will help them pay to replace leaking pipes and reduce sewage discharges into rivers and seas.
The Consumer Council for Water (CCW) has compiled a list of the amount by which each water company wants to increase its bills. Both Welsh providers are in the middle of the range, with their proposed bills estimated to increase by more than £200 over the period, adjusted for inflation. Southern Water is asking for the largest increase of 91%, while South Staffordshire and Cambridge Water are asking for the lowest increase of 24%.
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Water companies have been heavily criticized for widespread leaks and the amount of wastewater discharged. Over the weekend, sewage warnings were issued in Wales for 19 beach and coastal destinations due to pollution from storm sewers or poor water classification. Surfers Against Sewage published the warnings on its website on Saturday, May 18. Later that afternoon, lifeguards at Barry Island told swimmers to leave the sea due to concerns about water quality. Dŵr Cymru later said the warning was incorrect.
CCW CEO Mike Keil said the law’s increases “will come as a huge surprise to people.” He said: “People want to see improvements, they understand this will require investment, but I think the scale of what is being proposed here will come as a real shock and this is why water companies have redoubled their efforts to explain what people get their money’s worth.”
Lia Moutselou, CCW’s senior lead for policy in Wales, added: “These proposed bill increases would put enormous pressure on Welsh households who are barely managing or already unable to pay their water bills. It is serious It is worrying that such a small percentage of households believe that what is proposed is affordable, according to the companies’ own research.
“Customers want water companies to take better care of the environment. They understand that there is a price involved, but people need to see and experience a difference in the service they and those around them receive.”
The list of proposed price increases (all figures are esestimates for average bills, but costs vary depending on a property’s taxable value):
A spokesperson for Dwr Cymru said: “We submitted our plans to Ofwat last year as part of the five-year business planning process. We outlined our proposal to invest £4 billion in improving services between 2025 and 2030, to meet some of the increasing challenges we face around climate change, customer expectations and increasing environmental obligations.
“Our plans outlined the need to increase customer bills to support these changes. As a non-profit organization, every cent of our customers’ accounts goes towards maintaining and improving our services and every financial surplus is used to accelerate investments and provide social rates to customers who are struggling to make ends meet.
“We will always strive to keep our bills as low as possible, but we must also invest to improve services for today’s customers and to avoid piling on more problems for future generations. Ofwat will provide initial feedback on our plans in June before making a final decision at the end of this year. Only after these decisions have been made can we be certain of possible future price increases.”
Hafren Dyfrdwy was contacted for comment.