Why water companies insist higher household bills are 'essential' amid a track record of debt and dividends

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Water UK says extra funding from people's bills will help pay for 10 new reservoirs, cut leaks and stop the equivalent of 6,800 Olympic swimming pools worth of sewage spills. But in recent years, criticism of the industry has mounted.

In the next few years, utility firms want to increase the cost of our water bills. The plan to hike the annual cost of water for households was announced on Monday. It came as a surprise for many - it was only a week ago that the industry regulator, Ofwat, found the majority of firms in England and Wales have been underperforming. Ofwat even ordered companies to give millions of pounds back to customers. Now the same regulator is being asked to approve an increase in household bills.

3bnThames Water: £1.9bnSouth West: £1.5bnYorkshire Water: £1.4bnNorthumbrian Water: £1.4bnWessex Water: £1.2bnSouthern Water: £902m The companies themselves point out the industry paid an average return of 3.8% on shareholders' investment in 2021 - half the average for utilities and less than the regulator had allowed, while three companies made a loss.

 

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