Anglian, Northumbrian, Southern Water, South East Water and Wessex Water will raise household bills by an additional 2.2% over five years, bringing total permitted increases to 26.2% since 2024, the Competition and Markets Authority ruled. This allows the firms to generate £463 million in extra revenue, down from the £556 million initially proposed. The decision comes atop an average 24% increase already approved by Ofwat, pushing combined hikes close to or exceeding 50% when inflation is factored in. The CMA rejected most requested increases but permitted limited funding for infrastructure upgrades, balancing affordability against water security and pollution targets.

Southern Water, majority-owned by Macquarie, faces the steepest hike, with bills projected to reach £816 by 2030 before the latest ruling. The companies appealed Ofwat’s original approval, arguing the funding was insufficient for critical upgrades to aging infrastructure. Campaign group We Own It condemned the decision, stating billpayers’ money is diverted to private shareholder profits, highlighting the ongoing privatisation debate.

The ruling underscores the persistent tension between necessary investment in water systems and household affordability during a cost-of-living crisis. While the CMA curtailed some requests, the cumulative impact on consumers remains severe, with implications for political pressure on water privatisation and regulatory oversight.