<div id="readability-page-1" class="page">Investing.com - An independent group appointed by the Competition and Markets Authority has finalized its decision on disputed price controls for five water companies, allowing an expected average bill increase of 2.2% for their customers. The ruling affects Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water, which collectively serve approximately 14 million people and generate combined annual revenue of around £5 billion. These companies had rejected water regulator Ofwat’s December 2024 price control decision and requested a redetermination. [[pro_promotion | Unlock premium chipmaker and AI insights with InvestingPro ]] The CMA group rejected 83% of the increases sought by the water companies, granting them £463 million in additional revenue out of the £2.7 billion requested. This represents 17% of their total request and is £93 million less than the provisional ruling issued in October. Nearly half of the 2.2% average increase stems from market movements affecting financing costs for water companies. The remainder will fund service improvements, pollution reduction efforts, and infrastructure investment. The five companies had argued that Ofwat’s original decision, which set average bill increases of £157 or 36% over the 2025-2030 period across all 16 regulated water companies, left them unable to meet regulatory requirements. The CMA group completed its review within the legally mandated 12-month timeframe, scrutinizing evidence from the five water companies, Ofwat, and over 50 third parties including investor representatives and environmental and consumer groups. Kirstin Baker, chair of the independent group, said the decision balanced affordability concerns with the need to secure water supplies and reduce pollution, noting that a significant portion of the extra funding reflects market movements since Ofwat’s decision. The additional funding will enable companies to meet new legal requirements and deliver critical projects related to supply resilience and pollution reduction. The funding is tied to defined performance levels, with Ofwat rules in place to claw back money from companies that fail to deliver promised projects. Water companies’ requests for funding new activities and projects beyond Ofwat’s original allowances were largely rejected, with exceptions made only where additional spending was deemed necessary to deliver consumer benefits. The final decision shows varying impacts across the five companies. Anglian Water will see average bills reach £602 annually, a 2% increase from Ofwat’s decision. South East Water customers will pay £284, up 4%, while Southern Water bills will reach £641, up 3%. Wessex Water bills will increase to £614, up 3%. Northumbrian Water saw no overall change from Ofwat’s decision at £488. These increases are in addition to the 24% increase for customers of these companies already included in Ofwat’s price control.</div>

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The UK's Competition and Markets Authority (CMA) has approved a 2.2% average increase in water bills for five companies: Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water. This decision allows an additional £463 million in revenue, significantly less than the £2.7 billion requested. The increase will support service improvements and pollution reduction efforts. Anglian Water's bills will rise to £602, South East Water to £284, Southern Water to £641, Wessex Water to £614, while Northumbrian Water remains unchanged at £488. This follows a previous 24% increase already set by Ofwat.

UK’s CMA allows 2.2% average water bill increase for five disputed companies