Southern Water want to increase their water bills by 91 per cent, the highest in England and Wales, according to Consumer Council for Water.
The news was revealed after the UK figures were compiled by the consumer watchdog.
£915 a year by 2030
In April, Southern Water announced a 9 per cent rise in customers’ bills, meaning customers who pay for water and wastewater services saw their annual bills rise from £439 to £479.
The proposed 91 per cent increase would take annual bills to £915 a year by 2030.
The lowest rise in England and Wales is planned by South Staffs and Cambridge Water, rising by 24%, taking annual bills to £221.
Funding upgrades to infrastructure
Southern Water say the increases will fund spending over the next five years, which will include replacing ageing, leaking pipes and reducing sewage discharges into rivers and seas.
Earlier this year the water company outlined £21.5 million investment in Isle of Wight infrastructure over the next five years.
Dividend payouts
In terms of dividends taken from shareholders, in December 2023, Southern Water stated that the 2020-25 five year plan was underpinned by £3 billion of investment.
They added that their majority shareholder, Macquarie Asset Management, has invested over £1.5 billion to ensure they deliver on their 2020-25 plan, and say the asset management company has not taken a dividend since 2017.
The asset management company came under fire when in five of the ten years it owned Thames Water, more was paid out more in dividends than it made in profits, while debt rose from £2.5bn to over £10bn.
Quigley: This is the opposite of levelling up
Labour’s Isle of Wight West candidate, Richard Quigley (pictured below), said,
“The Tory party and our beleaguered MP Bob Seely are quick to jump to the defence of the water companies, but as consumers, we know the system isn’t working. Southern Water are asking for a 91% increase in bills, the highest of all the water companies. So it would be us, the customers paying for it. Their investors are let off the hook again, recent research has shown that ‘investors’ have effectively put less than nothing in as they have taken so much out. We should be very concerned that Macquarie have put £1billion into Southern Water and we are now being asked to cover their investment.
“This is the opposite of levelling up, we can’t choose a different supplier to get a better deal, the Labour party will introduce tough measures including, cutting discharges by 90%, giving the water regulator powers to block the payment of any bonuses until water bosses have cleaned up their filth. Water bosses who oversee repeated law-breaking will face criminal charges. Ending self monitoring and forcing all companies to monitor every single water outlet under independent supervision so companies can no longer cover up illegal sewage dumping. Introducing severe and automatic fines that water companies can’t afford to ignore for illegal sewage discharges. We don’t need the Tories making excuses for privatised water firms, we need action.”
Told to limit rises
Southern Water are one of several water companies who were told by Ofwat in 2023 that they would have to limit rises owing to missing key targets on leakages, supply and reducing pollution.
The BBC say that Ofwat will publish a preliminary report on the bill rises it expects to approve on 12th June, with the figures being finalised in December 2024.
Southern Water: Figures are loosely based on the bill rise proposals
News OnTheWight has approached Southern Water with some questions. Instead of replying to the specific questions, they pointed us to this statement from the company.
A spokesperson said,
“We are aware of media reports stating that Southern Water is asking Ofwat to approve a 91% increase in bills between now and 2030, we are concerned this risks creating confusion among our customers and communities about the future direction of bills.”
Katy Taylor, Chief Customer Officer, added,
“The figures being reported are loosely based on the bill rise proposals we put to Ofwat during the development of our draft business plan for 2025–30. Ofwat decides the charges our customers should pay, based on what we’ve proposed to deliver in our plan to meet regulatory requirements.
“While we await confirmation from Ofwat on our plan and the correspondent increase in bills, the numbers quoted have been increased by a third party to take into account estimated inflation levels over the next six years.
“We share everyone’s concerns about rising payments in the face of a cost-of-living crisis. We have been able to keep bills low, with the average combined water and wastewater bill increasing by only £2 in the past 10 years in nominal terms. We agree with our customers that we must now charge more so we can bring our bills in line with inflation, rising costs and, more importantly, so we can invest more to meet the expectations of our customers, and protect and enhance our environment.”
Article edit
10.40am 22nd May 2024 – RQ Comment added
11.03am 22nd May 2024 – SW Comment added
