Water bills for households in England and Wales to rise by £31 a year | Water bills

Households in England and Wales will see their water bills rise by an average of £31 a year as suppliers pay to fix leaky pipes and cut pollution.

Industry regulator Ofwat announced on Thursday it would allow businesses to raise their average bill by £157 over five years to £597 by 2030 to help with investment costs.

Consumer groups and politicians are putting pressure on regulators to limit bill increases amid widespread criticism of the industry over leaking infrastructure and the release of sewage into Britain's seas and rivers.

This increase is larger than the 21% increase that Ofwat first proposed in July. The regulator has since held detailed discussions with each water company about their spending plans.

The industry had asked for permission to spend £105bn over five years, arguing that the increased billing would enable investment in networks, making them more resilient to global warming. Ofwat's original proposals amounted to an outlay of £88bn.

Activists say businesses are under-investing in water infrastructure and households should not face steep price increases, citing concerns for particularly vulnerable consumers. Increased bills could lead to further calls for cheaper social charges for vulnerable households.

Water companies will scrutinize the plans and could appeal to the Competition and Markets Authority if they decide they do not allow households to be charged enough. Analysts said they expected several companies to object in hopes of raising rates for consumers.

For some water companies, the bill increases come amid severe financial pressure. Thames Water, South East Water and Southern Water are considered the companies most at risk of financial failure, with 10 of the 16 water companies in England and Wales on Ofwat's financial watch list. .

This decision is particularly important for Thames Water. The company, which supplies 16 million customers across London and the Thames Valley in south-east England, this week secured another £3bn of debt from some of its biggest creditors before running out of cash in March. obtained court approval to do so.

The increase in bills will be a key element in attracting new investors who will inject a further £3.3 billion in new equity investment and prevent the River Thames from sliding into temporary nationalisation.