Southern Water Proposes 84% Consumer Bill Increase Amid Regulatory Penalties

Southern Water is seeking to increase consumer bills by 84% between now and 2030, just weeks after being penalised by the regulator Ofwat for missing environmental targets.

The proposed hike is the highest across the UK, following the company’s failure to meet its commitment to reduce pollution incidents, which only decreased by 2% instead of the promised 30%.

The water company faces a £31.9 million share of the £157.6 million penalty issued by Ofwat to water firms across the country. Southern Water’s initial request for a bill increase to £585 by 2030 was reduced by Ofwat to £535 in a draft review, but the company has now proposed an even higher rise. The average consumer bill across England and Wales could rise by 40%, reaching £615 per year.

Stuart Ledger, Southern Water’s chief financial officer, defended the increase, stating that it reflects community demand for improved services and environmental benefits. Ofwat is expected to make a final decision on the proposed bill hikes by December 19.