Inflation nudges English bills up for some, despite average real-terms price cut for 2022/23

Water UK has said average yearly water and sewerage bills in England and Wales are forecast to rise by 1.7% or £7 in the 2022/23 year to £419, equivalent to £1.15 a day and an increase of 2p per day on last year’s prices.

At this average level, customers will see a real terms cut in their bills, given the rise is below the current 4.8% rate of inflation (CPIH). But there is considerable variation across the country. Ofwat said the range spans a 6% reduction to a 10% increase. The prices customers will pay for combined bills in 2022/23 will range from £472 in South West Water’s area (excluding the £50 government contribution) to £334 at Hafren Dyfrdwy.

The average water bill for 2022/23 is £200, ranging from £109 at the lowest priced Portsmouth Water to £246 at Essex and Suffolk Water.

The average sewerage bill is £219, ranging from £304 at South West (again excluding any government contribution) to £155 at Hafren Dyfrdwy.

While the water bill changes are modest and fuelled principally by inflation, they come against a backdrop of a cost of living squeeze on households and in particular the news of soaring energy prices and a 54% increase in the energy price cap. Ofwat and CCW urged water companies to do more to raise awareness of the help schemes available.

Water UK reported a record 1.1m customers are now receiving some form of support, set to rise to 1.4m by 2025. But CCW said only one in four customers are aware that water firms provide assistance, and five out of six customers who cannot afford their water bill are not getting the financial support they need.

Ofwat interim chief executive, David Black, said: “Offering a helping hand to those who need it must be a top priority for water companies and we want to see them being proactive, creative and supportive for their customers.”

Welsh Water announced alongside its 3.8%-6.6% bill rises that its not for profit model had made if possible to earmark £12.4m in 2022/23 to help 54,000 more customers, on top of the 130,000 already receiving some kind of assistance.

Most companies encouraged customers to contact them for help, even for instance Portsmouth Water whose bills are only a little over half the national average, seeing as customers there will see an average 6.1% increase.

Anglian said its 5% rise to £454 would fund its largest ever single year investment of £680m.