Two water suppliers serving Wales want to increase their prices by more than 40% over the next five years, new figures show. Hafren Dyfrdwy will demand a 56% increase in customer bills, while Dŵr Cymru will demand a whopping 43% increase in customer bills over the next five years.
Water companies will meet with Ofwat this week to discuss what fees companies can charge between 2025 and 2030. Companies say price increases will help them fund replacing leaky pipes and reduce wastewater discharges into rivers and seas.
The Consumer Council for Water (CCW) has compiled a list of the amounts each water company wants to increase their bills by. Both Welsh providers are in the middle of the pack, with their proposed bills expected to rise by more than £200 over the period, adjusted for inflation. Southern Water is demanding the largest increase of 91%, while South Staffordshire and Cambridge Water are demanding the lowest increase of 24%.
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Water suppliers are heavily criticized for large-scale leaks and the amount of wastewater discharged. Sewage warnings were issued for 19 beach and coastal destinations in Wales last weekend due to stormwater pollution or poor water classification. Surfers Against Sewage posted the warnings on their website on Saturday, May 18. Later that afternoon, lifeguards on Barry Island asked swimmers to leave the sea amid concerns about water quality. Dŵr Cymru later said the warning was false.
Mike Keil, executive director of the CCW, said the bill increases would “come as a huge surprise to people.” He said: “People want to see improvements, they understand that this requires investment, but I think the scale of what is being proposed here will be a real shock and that is why the water companies have redoubled their efforts to explain to people “What they get for their money.”
Lia Moutselou, CCW head of Welsh policy, added: “These proposed bill increases would put enormous pressure on households in Wales who are barely able to pay their water bills or have already defaulted on them. It is seriously worrying that such a small percentage of households believe what is being proposed is affordable, according to the companies’ own research.
“Customers want water companies to take better care of the environment. They understand there is a price associated with it, 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 numbers are thereEstimates 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 have set out our proposal to invest £4 billion between 2025 and 2030 to improve services to address some of the increasing challenges we face around climate change, customer expectations and increasing environmental commitments.
“Our plans highlighted the need to increase customer bills to support these changes. Because we are a not-for-profit company, every penny of our customers’ bills goes toward maintaining and improving our services. Any financial surplus will be used to accelerate investments and provide social tariffs to customers struggling to make ends meet.
“We will always try to keep our bills as low as possible, but we must also invest to improve services for customers today and avoid burdening future generations with further problems.” Ofwat will make a first in June Provide feedback on our plans before making a final decision at the end of the year. Only once these decisions have been made can we be sure about possible future price increases.”
Hafren Dyfrdwy have been contacted for comment.