customers in England and Wales face water bill hikes for upgrades

The water industry regulator in England and Wales is facing criticism for proposed price hikes that could increase bills by up to 44% over the next five years. Campaign group Wasp has accused the regulator of facilitating a 'stealth bailout' for water companies, arguing that consumers are being unfairly burdened with the costs of infrastructure upgrades. Wasp has called for the price review to be postponed until ongoing investigations into the industry are completed, including a review announced by the environment secretary. Wasp's concerns stem from a lack of transparency regarding how much shareholders have contributed to infrastructure improvements since the privatization of water companies. The organization highlights that billpayers have largely financed these upgrades, while water firms have distributed billions in dividends. The proposed price increases are particularly significant for Southern Water, where bills could rise by £183, and Thames Water, which anticipates an increase of over £99. Ofwat, the regulator, claims that its framework has facilitated £200 billion in investment since privatization, yet it has not disclosed the proportion funded by shareholders. This lack of accountability raises questions about the effectiveness of the regulatory system in ensuring that investments translate into improved water quality and environmental protection. As investigations by the Office for Environmental Protection continue, Wasp insists that the price review should not proceed as planned. The organization argues that the urgency to address infrastructure issues should not justify exploiting consumers, emphasizing the need for a fair and transparent approach to funding necessary improvements in the water sector.