Some are facing a 73% increase as Ofwat says how much their water bills will rise

Consumers in England and Wales are to find out how much their water bills are likely to rise over the next five years and what firms will have to do to improve their services in return. Regulator Ofwat will publish its “draft determinations” on Thursday when it signs off on firms’ requests to raise bills based on their spending plans, ahead of a final decision at the end of the year.

Southern Water asked for the biggest bill rise of the utilities, up 73% to £727 a year, while Wessex Water asked for a 36% rise to £690 a year. Thames Water, which has 16 million customers in London and the Thames Valley region, unveiled plans in April that would see spending rise to £19.8 billion to upgrade its infrastructure and reduce sewage leaks.

However, it would also see customers’ bills rise by 44% to £627, a figure which has sparked backlash from consumer groups. The proposed increases in the law come amid public anger over rampant pollution of waterways by leaking sewage firms, while they continue to hand out dividends to shareholders and bonuses to executives – which Labor has pledged to clamp down on.

Sewage discharges into England’s rivers and seas are set to double by 2023. According to the Environment Agency, there were 3.6 million hours of discharge last year – the equivalent of around 400 years – compared to 1.75 million hours in 2022.

No river in England is considered to be in good overall health and beauty spots including Windermere in the Lake District have been affected by sewage leaks. The situation has angered campaigners, who say privatized water companies have paid billions of pounds in bonuses to shareholders and bosses without investing enough in the country’s water infrastructure, even though utilities point to the large sums of investment they have made.

The large amount of water lost due to leaks in the system also raises widespread concerns, especially during dry periods when consumers face a ban on hose lines. Recent research by the University of Greenwich suggests that investors have taken £85.2 billion from 10 water and sewerage firms in England and Wales since the industry was privatized more than 30 years ago.

More recently, England’s three biggest listed water companies – Severn Trent, South West Water and United Utilities – paid out more dividends this year than last. New rules were introduced last year to ensure water companies do not pay dividends unless they are deemed to have delivered for customers and the environment.

The chief executive of the Consumer Council for Water, Mike Keil, said in May that customers will not tolerate future bill increases “unless they see and feel a big change in the service they get from their water company – whether they trust to swim at the local beach or face a more reliable water supply. If customers are going to be asked to pay considerably more, they have the right to expect much more in return.”