Water companies are proposing a £156 annual increase in bills by 2030 to finance vital upgrades and decrease sewage discharges. This surge in charges would facilitate a nearly doubled
investment in infrastructure, totaling £96 billion, and support the construction of ten new reservoirs, according to the water industry.
Nevertheless, these plans have arisen amidst public outcry over excessive sewage discharges into rivers and oceans, as well as ongoing concerns about the rising cost of living. Water UK, the industry's representative body, has submitted the proposal to the water industry regulator, Ofwat, for approval. If given the green light, water companies assert that these "record-breaking investment proposals" will ensure the nation's long-term water supply.
Water UK envisions this initiative as the "most ambitious modernization of sewers since the Victorian era" and anticipates a 25% reduction in leaks by the end of the decade compared to 2020. Furthermore, they aim to reduce sewage spills into water bodies by more than 140,000 annually by 2030. In 2022, water companies discharged sewage into rivers and seas on over 300,000 occasions.
While Environment Secretary Therese Coffey broadly supports these investment plans, she has emphasized that Ofwat must ensure customers are not burdened by poor performance. She believes that the regulator should use its full authority on behalf of consumers and urged water companies to take action to secure a better future for generations to come.
However, clean water advocate Feargal Sharkey has criticized the proposal, labeling it a "breathtakingly catastrophic strategy" for the industry. Sharkey points out that Ofwat has previously stated that customers have already paid for the development, construction, and maintenance of a sewage system capable of adequately handling sewage. Consequently, he questions why Ofwat would agree to have customers pay again for a service that they have not yet received.
Last week, Ofwat ordered water companies to refund £114 million to customers through reduced bills after failing to meet key targets. The regulator found that these firms fell short in terms of performance measures related to leaks, water supply, and pollution reduction. None of the companies reached the highest level of performance, with some classified as "lagging" and the remainder as "average." If water companies continue to miss their targets, Ofwat will limit the amount of money they can collect from customers. Most of the reviewed water providers will have to reduce bills in 2024-25, rather than issuing lump-sum refunds to individual bill payers. Photo by Keith Edkins, Wikimedia commons.