Millions of households are facing larger increases in their water bills as five companies have been authorized to raise prices by more than initially planned. The companies involved are Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water, who contested that the initial price hikes set by water regulator Ofwat were insufficient.

In December, Ofwat announced that water companies could raise bills by 36% over the next five years, averaging £157 per household, to fund upgrades and decrease sewage discharges. Following an appeal by the firms in March, the Competition and Markets Authority (CMA) launched an investigation.

The CMA has now approved additional increases beyond the original announcements for Anglian and Northumbrian by 1%, Southern by 3%, South East by 4%, and Wessex by 5%. These companies collectively serve seven million UK households. The CMA granted only 21% of the firms’ requested £2.7 billion revenue increase, amounting to an extra £556 million.

Consumer groups are cautioning that households already faced significant bill hikes in April, with the average water bill rising by around £123 annually. Kirstin Baker, leading the independent group appointed by the CMA to review price controls, stated that the requested bill increases by the water companies were largely unjustified.

Mike Keil, Chief Executive of the Consumer Council for Water (CCW), expressed concern over further bill increases post-April, noting a missed opportunity to reduce financing costs for the five companies, potentially saving customers £41 per year.

Water minister Emma Hardy acknowledged the public’s frustration over bill rises, urging water companies to offer support to struggling individuals. Hardy emphasized investments in infrastructure upgrades over bonuses and outlined efforts to establish a robust regulator to enhance water quality and regain public trust.

While switching water providers is not an option, there are strategies to save money on water bills, such as reducing water usage through minor adjustments like shorter showers and turning off taps when not in use. Installing a water meter and following advice from financial expert Martin Lewis on potential savings based on household size can also help cut costs. Additionally, households can access free water-saving devices through Save Water Save Money, including shower heads, tap inserts, and cistern bags to promote water conservation.