Sussex councillor slams ‘astronomical and frankly obscene’ water bill price hike

Household water bills in England and Wales will increase by an average £31 a year over the next five years, regulator Ofwat has announced.

The increase is significantly higher than the expected average rise of around £20 a year per household, outlined in the regulator’s draft proposals in July. Ofwat said the increase would pay for a £104 billion upgrade of the water sector to deliver ‘substantial, lasting, improvements for customers and the environment’.

However, despite the average £31 a year increase figure, households will face a heavy average hike of £86 or 20 per cent in the next year, excluding inflation, with smaller percentage increases in each of the next four years.

Joss Loader, the chairman of the Shoreham Beach Residents' Association and Adur district councillor for Marine Ward (Shoreham Beach), said: “Ofwat's decision to approve these astronomical and frankly obscene price rises have caused worry, anger and total incredulity locally, given the dismal performance by Southern Water in recent years.

"Local people in Adur have endured burst mains, tankers on the streets, and sewage spills in both the river and sea.”

Southern Water said Ofwat’s publication ‘sets out how much water companies can invest’ in their networks over the next five years – and ‘how they should set customer bills to support that activity’.

The water company’s teams are now ‘reviewing Ofwat's decision carefully’ to ‘make sure it meets the needs of our communities and environment’.

Southern Water CEO Lawrence Gosden said: “We note Ofwat’s publication of its Final Determination for 2025-2030. It’s important that we take time now to review all the detail carefully, as we seek to understand the level of support the regulator has shown for our ambitious investment plan.

“We’re very conscious that a rise in bills isn’t easy for our customers, essential though it is to delivering the improved performance and infrastructure that’s required. So we’re significantly expanding the wide range of support available for those customers who are most in need.

“Our plan was driven by the views of thousands of Southern Water customers. That’s why we need to be sure that what’s been set out in Ofwat’s Final Determination meets the expectations of our communities – in protecting the environment and building a truly resilient network for future generations.

“We’ll say more about Ofwat’s Final Determination in due course.”

Adur councillor Joss Loader said, whilst customers’ bills have gone up, Southern Water ‘has paid its CEO and chief financial officer bonuses’.

She added: "I can only hope that the government's much-lauded Water (Special Measures) Bill will deliver what it promises. However, I don't think it goes far enough.

"The sooner water companies are brought back into public ownership the better. The current system is broken and fails to deliver on every level."

In response, Southern Water said executive bonuses are ‘heavily linked to the delivery of improvements in our customer satisfaction and environmental performance’. These are ‘paid by shareholders, not customers’, the water company added.

A spokesperson said: “In 2023, CEO Lawrence Gosden declined a bonus due to company performance, and then took only a partial bonus in 2024 as the turnaround plan delivered signs of progress.

“Our dividend and executive pay policies are reviewed annually and published in our annual report and financial statements each July.”