Water bills in the North East are set to soar above £500 by 2030, following Ofwat's decision to permit Northumbrian Water a 21% hike in charges over the next five years. The water regulator's ruling will see the average bill in the region reach £510 by the 2029-30 period. This figure is marginally lower than what Northumbrian Water had initially sought, and still positions the company as having the lowest all-service water bill in the UK, even after other firms were granted permission for steeper increases.
In its determination, Ofwat has mandated that Northumbrian Water must cut storm overspills by 28% and achieve a 7% reduction in leakage. The company has been allocated £6.1bn to invest over the coming five-year span, which is £2.
5bn more than in its previous cycle. Despite being 3% less than what the company requested, Ofwat believes "we consider that Northumbrian Water can deliver its performance commitments and obligations for less cost than it requested". Initially, Ofwat had suggested a rise in bills to £462 but revised this upwards after considering feedback from Northumbrian Water and other stakeholders.
Northumbrian Water had proposed a £524 cap, citing research indicating its customers in the North East would be willing to pay more for environmental enhancements and improved service, reports Chronicle Live . Residents should brace for an immediate increase of £41 in their bills next year, followed by smaller increments in subsequent years. .
A Northumbrian Water spokesperson stated: "We spent the last four years talking to our customers about what matters most to them and we are pleased to have developed an ambitious business plan for 2025 to 2030 that reflects their priorities for some important investments in our water and wastewater infrastructure, while making sure that those customers who might struggle to pay their bills get the financial support they need. "We understand that some of our customers may have questions or concerns following this announcement, especially around bills and what this might mean for them. Be assured that we're committed to keeping bills fair and manageable, especially during these challenging times, while delivering high quality services and protecting the environment.
" "And while our customers' bills are likely to remain the lowest anywhere in the country, there's lots of financial support and assistance available to those that need it. We offer help in the form of things like flexible payment plans; payment breaks and low-income discounts and bill caps. We'd urge anyone to please speak to us if they have any concerns or need any help.
" Ofwat stated that the nationwide bill increases would fund over £100 billion of improvements to the UK's water system, resulting in "substantial, lasting, improvements for customers and the environment". . Chief executive David Black stated: "Today marks a significant moment.
It provides water companies with an opportunity to regain customers' trust by using this £104bn upgrade to turn around their environmental record and improve services to customers." Black added that water companies now need to take on the challenge and show they can deliver significant improvement over time to justify the increase in customer bills, alongside stepping up investment and transforming their culture and performance, with CCW holding companies to account. Environment Secretary Steve Reed said: "Under the Conservatives , our sewage system crumbled.
They irresponsibly let water companies divert customers' money to line the pockets of their bosses and shareholders. The public are right to be angry after they have been left to pay the price of Conservative failure." "This Labour Government will ringfence money earmarked for investment so it can never be diverted for bonuses and shareholder payouts.
We will clean up our rivers, lakes and seas for good." Meanwhile, the Consumer Council for Water has cautioned that bill increases are "more than what many people can afford". For daily news from Teesside's courts direct to your inbox, go here to sign up to our free court newsletter Teesside Live is now on WhatsApp and we want you to join our community.
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Water bills across North East to rise above £500 after regulator decision
Ofwat has awarded Northumbrian Water a 21% increase in charges over the next five years, less than what the company requested