Last month was by far the driest July in England and Wales since records began in 1836, with just 6.5mm of rain – a 10th of the long‑term average. Climate change is adding pressure to a water system already strained by unsustainable use, poor management and weak regulation. Water companies are exploring new charging approaches that would increase bills for heavy users, a concept likened to surge pricing.

Regulators say claims of drought‑linked price hikes are misrepresentations of trials aimed at helping customers save water and money. Water UK notes that any fee changes would merely reallocate costs among customers because revenue is capped by Ofwat. The sector has paid out tens of billions to investors while underinvesting in infrastructure, leaving more than a quarter of groundwater bodies overexploited and threatening a public supply deficit of up to 5bn litres per day within 30 years.

International experts argue higher water prices are needed to curb wasteful use, and increasing‑block tariffs are being trialled. Affinity Water has offered 30,000 litres free per household, charging progressively more beyond that, while South West Water says its model would cut bills for 90% of customers and raise them for the heaviest users. About a third of households still lack meters, paying flat rates tied to property size.

Mike Keil, chief executive of the Consumer Council for Water, warns that pricing must target high users without hurting low‑income households. Reform is overdue, requiring government action to strengthen standards, drive investment and address perverse incentives in agriculture and industry.