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<\/a><\/div>\n<\/div>\nAfter a seven-month review, the CMA\u2019s independent panel ruled that only 21% of the firms\u2019 proposed increases were justified, allowing a smaller uplift to help tackle pollution, strengthen supplies and reflect higher borrowing costs.<\/p>\n
The decision adds an average 3% rise to customer bills for the five companies. This increase will be on top of the 24% increase already set out in Ofwat\u2019s PR24 settlement for 2025\u201330.<\/p>\n
Kirstin Baker, chair of the CMA\u2019s independent group, said: \u201cWe\u2019ve found that water companies\u2019 requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified.<\/p>\n
“We understand the real pressure on household budgets and have worked to keep increases to a minimum, while still ensuring there is funding to deliver essential improvements at reasonable cost.\u201d<\/p>\n
The CMA said it recognised rising costs of capital and inflation pressures, but stressed that most of the additional bids were unnecessary or poorly evidenced.<\/p>\n
It said future increases would be tied to clear performance outputs, meaning companies could face penalties if they fail to deliver promised service improvements.<\/p>\n
The provisional ruling is now open for consultation before a final decision is published next year.<\/p>\n
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