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CMA Provisionally Allows Five Water Firms to Lift Bills by Up to 5% Beyond Ofwat Cap

The provisional ruling opens a consultation that could add roughly 3% to bills for 14.7 million customers.

Overview

  • An independent CMA panel has tentatively approved an extra £556 million in revenue for Anglian, Northumbrian, Southern, South East and Wessex, equal to 21% of the £2.7 billion they sought.
  • The decision implies further bill increases of about 1% for Anglian and Northumbrian, 3% for Southern, 4% for South East and 5% for Wessex on top of Ofwat’s allowances.
  • The CMA expects an average additional 3% rise for affected households, on top of Ofwat’s multi‑year increases previously set to fund sector investment through 2030.
  • The panel said extra funding would support supply resilience, pollution reduction and higher financing costs, while finding most company requests for larger hikes largely unjustified.
  • The outcome remains provisional pending consultation, with ministers urging support for struggling customers and consumer groups warning the added costs may not deliver commensurate improvements.