Southern Water have announced it will increase its average combined household bill by 8 per cent from April 2026.
The rise affects customers who receive both water and wastewater services from the company.
Different rates for different services
Households receiving water-only services from Southern Water will see an average bill rise of 25.8 per cent, but customers receiving wastewater-only services will see a decrease of 4 per cent.
Non household customers will see an increase in wholesale water charges of 28.1 per cent, offset by a 6.3 per cent reduction in wholesale wastewater charges.
Support for struggling families
Southern Water say the bill increase will help them support almost 200,000 customers who need financial assistance.
This represents 10 per cent of the company’s entire customer base. Eligible customers will receive a minimum discount of 45 per cent on their bills.
£8.5 billion investment programme
The company enters the second year of its five-year investment plan, which runs until 2030. Southern Water will spend £8.5 billion on improvements that customers have requested.
The investment programme aims to drastically cut storm overflows into rivers and seas. The company plans to tackle the challenges of climate change, water scarcity and population growth.
Southern Water promises to end serious pollution and flooding incidents. The investment will create a resilient and future-proofed water supply across the region.
Company response
Chief Customer Officer Antonia Barton acknowledged the difficult financial climate.
“We understand that times are challenging for many customers, and we’re doing all we can to support those who need it, while delivering the improvements our customers have told us matter most,” she said.
“Over the next five years, we’re investing £8.5 billion to upgrade ageing infrastructure, protect rivers and seas, and make water supplies resilient for generations to come.
“This is the biggest ever investment in our water infrastructure, and it’s essential to keep services reliable and sustainable long term. Every penny of the bill increase will be reinvested into improving our services. Nothing will go to shareholders.”
Managing the Impact
Antonia Barton explained the company’s approach to spreading cost increases.
“As part of this plan, we’ve worked hard to spread rises more evenly over the coming years to reduce the impact on households.
“We’re also expanding help for those who need it most, with around 10 per cent of our customer base able to benefit from a discount, flexible payment plans, and a hardship fund for those facing exceptional challenges.
“If you’re worried about paying your bill, support is available – and we’re here to help.”
Context of recent increases
Last year, Southern Water raised average household bills by 46.7 per cent.
The company had kept charges static for a decade before implementing that larger increase to front-load its investment plans.
The company will spread the remaining increases over the next four years to make them more manageable for customers.
Customers can find more information about how Southern Water spends bill revenue on the website.
