In the News Teaching Activity – A big hike in water bills this year (Feb 2025)

Water bills in England and Wales are set for their biggest rise since privatisation, with households paying more while investors benefit.

The £123 average bill increase will hit millions of households already struggling with rising costs, as inflation-linked hikes push the rise beyond Ofwat’s forecast. Water firms argue the increases are needed for a £104bn infrastructure upgrade, but critics say decades of underinvestment have left customers footing the bill. Southern Water faces a 47% surge, while Thames Water and others impose steep rises despite financial struggles. Meanwhile, shareholders stand to gain, with firms like United Utilities increasing dividends. Regulators face pressure to balance investment needs with consumer protection.

Water bills in England and Wales to rise by £123 on average this year | Water industry | The Guardian

1. ‘Customers of Southern Water, the struggling utility company that covers parts of south-east England including Hampshire and Kent, face a 47% rise, to a record £703.’ Use this information to calculate the current Southern Water bill. How much extra money will an average household in this region have to find to pay the new water bills?

2. Assess the impact of the water bill increase on both consumers and investors.

3. Discuss the view that the UK water industry should be re-nationalised.