FIVE WATER COMPANIES CHALLENGE OFWAT’S LIMITS ON BILL INCREASES – Ofwat approved an average 36% price increase from April 1 before inflation adjustments
Five additional water companies have appealed to the UK’s competition watchdog, requesting permission to impose higher bill increases than those approved for the next five years.
Southern Water, Anglian Water, South East Water, Northumbrian Water, and Wessex Water confirmed that they have asked the Competition and Markets Authority (CMA) to review Ofwat’s recent ruling on their business plans for 2025 to 2030. This follows Thames Water’s appeal last week, bringing the total to six companies—representing a majority of water customers in England—seeking to charge more than what the regulator permitted.
Ofwat, which sets water bills in England and Wales for five-year periods, approved an average 36% price increase from April 1, before inflation adjustments. However, the companies argue that the permitted rises are insufficient to fund crucial investments in infrastructure, including pipelines, drainage systems, reservoirs, and treatment facilities.
The six appeals mark the highest number of challenges to Ofwat’s pricing decisions since the industry’s privatisation in 1989. In the previous review in 2020, four companies appealed and secured some concessions.
Chris Walters, Ofwat’s senior director for the price review, acknowledged the companies’ right to request a CMA review, stating: “Final determinations were based on a rigorous assessment to ensure every pound from customer bills delivers value for money, tangible improvements, and the necessary investment in the sector.”
With the Labour government pushing a “pro-growth” agenda, the CMA is under pressure to balance regulatory oversight with ensuring infrastructure investment. CMA chief executive Sarah Cardell recently stated the watchdog must ensure regulatory decisions do not have a “chilling effect” on investment.
