Water Bill Hikes in England and Wales: A New Era of Increased Costs and Promised Improvements
In a significant development that will impact households across England and Wales, the UK regulator Ofwat has announced that average water bills are set to rise by 36% over the next five years. This decision, confirmed on December 19, 2024, marks a substantial increase in water costs for consumers.
The Reason Behind the Hike
The primary reason for this increase is to fund a £104 billion upgrade to the aging water infrastructure. Water companies, which were privatized in 1989, are required to reach settlements with Ofwat every five years. These agreements cover bill increases, investment amounts, and the returns investors can make. The current determination includes "substantial improvements" for both customers and the environment, as outlined by Ofwat's chief executive, David Black.
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