South West Water bills to increase from April

Households across the South West will see water bills rise significantly from April, with South West Water customers facing an average increase of 23% by 2030, according to the regulator Ofwat.

The rise is part of a nationwide effort to fund major infrastructure upgrades and tackle longstanding issues such as sewage discharges and water leaks.

The industry regulator Ofwat announced today, from next April, it would allow companies to raise average bills by £31 a year.

South West Water customers currently pay an average annual bill of £497, but this will increase to £610 over the next six years. While the rise is lower than the company’s initial request of 26%, it is still a substantial hike that will put pressure on household budgets. 

David Black, Ofwat’s chief executive, said the higher bills are essential to deliver improvements. “The investment will bring significant reductions in sewage spills, further reductions in leakage, and improved services for customers,” he said. “This funding is critical for ensuring cleaner rivers, better seas, and secure long-term drinking water supplies.”

The water industry has come under fire in recent years for widespread environmental issues and financial mismanagement. Thames Water, for instance, is grappling with massive debts and has been fined £18 million for breaching licence conditions related to dividend payments. Despite its financial troubles, the company’s customers will face a 35% increase in bills, taking the average annual cost to £588 by 2030.

South West Water’s increases are comparatively moderate but will still impact many households in the region, particularly as inflation and other cost-of-living pressures mount.

The Consumer Council for Water (CCW) has expressed concerns about the affordability of the rises. Mike Keil, the CCW’s chief executive, noted that two in five households in England and Wales are likely to struggle with these increases. “While these rises may be less than what water companies initially requested, they’re still more than many can afford, especially with the first-year increases hitting customers particularly hard,” he said.

The additional revenue is part of a £104 billion investment plan for the water sector, aimed at modernising infrastructure and improving environmental outcomes. Ofwat insists the upgrades will justify the higher bills, delivering cleaner water and better services over the long term.

However, customers in the South West may feel the pinch as bills rise above current averages. While South West Water had initially proposed a steeper hike, the approved increases will still demand adjustments for many households. Residents are encouraged to seek support if they anticipate difficulties, with South West Water offering schemes for those struggling to pay.

The South West’s natural beauty, including its coastline and rivers, makes the region particularly sensitive to water quality issues. Local campaigners have long called for improved management of sewage discharges, and the new funding could address some of these concerns.