The average household water bill in England and Wales is set to rise by £94 over the next five years.

It comes as water regulator Ofwat's proposal showed that water and wastewater companies such as Thames Water would be increasing the average bill to £94 in total over five years – or £19 a year – excluding inflation.

Despite the increase, it is still lower than proposed by water companies as Ofwat shared it's a third less than the increase requested by companies.

Sharing that companies’ business plans proposed increases averaging £144 over five years.

For example, Thames Water’s proposed increase of £191 by 2030 has been reduced to £99, while Severn Trent’s proposed rise of £144 has been cut to £93.

Water bills to rise by £19 a year

Discussing the rise, Ofwat chief executive David Black said: “Customers want to see radical change in the way water companies care for the environment.

"Our draft decisions on company plans approve a tripling of investment to make sustained improvement to customer service and the environment at a fair price for customers.

“These proposals aim to deliver a 44% reduction in spills from storm overflows compared to levels in 2021.

"We expect all companies to embrace innovation and go further and faster to reduce spills wherever possible.

“Today’s announcement also increases the resilience of our water supplies to the impact of climate change and will reduce how much water is taken from rivers by enabling a range of long-term water supply projects, which includes plans for nine reservoirs.

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“Let me be very clear to water companies – we will be closely scrutinising the delivery of their plans and will hold them to account to deliver real improvements to the environment and for customers and on their investment programmes.”

Ofwat confirmed that the increase will be used to fund investment for improvements including replacing leaking pipes and reducing sewage discharged into rivers and seas. 

The increase varies depending on the region, with Southern Water increasing by £183 (44%), Anglian £66 (13%) and Thames Water rising to £99 (23%) over five years.