Southern Water defends proposal for 84% customer bill rise amid 'huge environmental benefits'

Sky News reported this morning (Tuesday, October 22) that water companies across England and Wales are ‘asking for bills to be made even higher than they first requested’ – with Southern Water seeking an 84 per cent hike.

According to figures published by water regulator Ofwat, Southern Water’s proposed average bill would be £772 by 2029/30 – the ‘biggest rise’ when compared to every other water company.

In response, Stuart Ledger, Southern Water’s chief financial officer, said: “We understand that in percentage terms, our proposed bill rise is among the highest, and that this may cause concern among some of our customers, but we are taking this approach in response to what our communities have told us they want us to deliver.

“Our bills have also historically been at the lower end of the industry, having not changed in sterling terms since 2014.

“We are ready to invest to deliver huge environmental benefits and a secure, resilient water future for the region and look forward to working with our regulators to achieve this.”

Sky News reported that water companies are having to make bills ‘even more expensive’ to fund investment in systems to ‘stop sewage outflows and to meet high fines and comply with more regulation’.

The article read: “Ofwat will make its final decision for how much water bills can rise on 19 December. Its interim decision, made in July, said the average bill could rise 21 per cent a year.”

Southern Water said it is now proposing to invest around £9 billion, instead of £7.8 billion, over the next five years – ‘in response to Ofwat’s Draft Determination and new input from the Environment Agency’.

The water company said this ‘brings forward environmental improvements’ previously proposed for 2030-35.

A spokesperson added: “The average water and wastewater bill for 2024 is £439. In 2014 it was £437. That’s an increase of 0.5 per cent in 10 years.

"At the same time inflation has gone up 33 per cent, increasing the cost of everyday items. The increases coming will happen gradually over the next 5-year period.  

“Financially vulnerable customers will get discounts of at least 45 per cent on their bills and up to 90 per cent in some cases.”