Millions face bigger water bill increases than expected

Millions of households in England face the prospect of bigger water bill increases than originally expected as the competition regulator prepares to give a preliminary verdict on industry spending plans as soon as this week.

- Jasper Jolly

Five water companies appealed to the Competition and Markets Authority (CMA) to ask for permission to raise bills higher than allowed previously by the industry regulator, Ofwat.

If the CMA approves the larger increases to bills, it could create a political headache for Emma Reynolds, the newly installed environment secretary - the 10th in 10 years.

The five companies - Anglian, Northumbrian, Southern, Wessex and South East - together serve 14.7 million customers. Thames Water, Britain's biggest water company with another 16 million customers, also initially appealed but has paused the process amid negotiations to try to cut its debt burden and secure its future.

Under England and Wales's mostly privatised system, Ofwat sets the amount that water companies can charge customers over a five-year period. Ofwat said in December average annual bills could rise 36% to £597 by 2030 to help pay for investment.