Household water bills are set to drop by an average of £2 from April, which after inflation will be the same rate as a decade ago.
Bills and reductions vary between companies, but most households will save at a time when more customers across England and Wales are accessing payment support schemes than ever before. Due to the economic hit of the pandemic water companies have helped more than 90,000 billpayers with payment breaks and more than one million customers have had their bills reduced.
By the end of AMP7, the number of customers receiving support is set to rise to 1.4 million.
Lowering bills was a key part of Ofwat’s framework for PR19 for which it set the sector tough performance targets to meet with a reduced allowed income from customers.
The biggest price drop for the second year of AMP7 will be for billpayers in South West’s region where combined water and sewerage bills will fall by £23, although their charges remain the highest nationally.
Customers of Hafren Dyfrdwy will enjoy the lowest combined bills despite the company making the biggest price hike of the sector – up £13 year-on-year. Average increases will be seen by customers of Severn Trent and Thames also, which were predicted by CCW when the final determinations were published in December 2019.
For water only, Portsmouth’s prices remain the lowest at £104 per annum while Thames’ will be the highest at £230. The national average for water only is £194.
Charges for water remained more static while annual average household sewerage bills dropped by £3, with variation between companies.
Increased spending on sewerage has been suggested for the next price review from 2024 by chair of the Environmental Audit Committee, MP Philip Dunne, who said investment was necessary to enable the industry to move away from its reliance on combined sewer overflows.
Water UK chief executive Christine McGourty said: “It’s been a difficult year for so many people, and water companies throughout have been actively seeking out customers who might benefit from extra support while continuing to deliver world class services and investing for the future.”
Consumer watchdog CCW warned that even a small increase could “prove a tipping point” for people on the brink of financial crisis.
“While it’s good news the average water bill is set to fall that won’t be the case for millions of households who could see an increase at a time when they are already struggling to stay afloat,” said Emma Clancy, chief executive of CCW.