Southern Water asks Ofwat to hike bills by 84% over five years, with no new request by Wessex Water

Thousands of New Forest residents could see their water bills soar by more than 84% over the next five years.

Southern Water is among 10 water companies asking to further hike its bills, and the firm is asking for the highest rise, according to figures released by watchdog Ofwat today (Tuesday).

However, those Forest households billed by Wessex Water will be spared any new increase, as it’s the only provider not requesting one.

Earlier this year, companies asked Ofwat for bills averaging £585 by 2030, an increase of about one-third from the current average of £439.

This summer, the regulator pared back those requests to an average of £535, in its draft price review in July.

But now, after a consultation period, 10 of the 11 water companies have hit back with even higher requests than before.

Many argue that they need to spend more on upgrading their pipes, sewers and reservoirs than originally planned, and therefore need bills to go up too.

Ofwat wrote in an update today that this was “mostly to meet the requirements of other regulators like the Environment Agency and Drinking Water Inspectorate”.

But some of the increases are designed to meet “changes to the proposed rate of return for investors”.

Ofwat is due to make a final decision on bills increases on 19th December, with companies going to the negotiating table with regulators before then.

The regulator wrote: “We will consider this additional expenditure request as part of our final determinations.”

The latest string of demands come amid public and political outcry over sewage spills in the privatised water industry, while companies’ investors receive dividends and top executives get bonuses.

A recent performance report by Ofwat showed there has only been a 2% reduction in pollution since 2019 despite firms committing to cutting it by 30%.

Ofwat also told Southern Water to pay back customers £31.9 million, and Wessex Water £5.3 million for missing key service targets.

Labour has suggested sweeping new laws which could see bosses face up to two years in jail if they obstruct regulators – but so far nothing has come into force.