While Ofwat sets limits, it is ultimately up to water and sewerage companies in England and Wales to decide what they charge households.
Typically this means bills differ regionally, while factors such as inflation, water company performance and a household’s income may also affect what individuals pay.
Households in England and Wales are typically billed for water in one of two ways:
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Unmetered customers pay a set amount for their water and sewage services, regardless of how much water they use. This is usually based on the rateable value of their home – an approximate assessment of the annual rental value of a property.
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Metered customers only pay for what they use. They have readings from their water meters collected by the water company.
All households pay for sewerage services as well, either as part of their water bills or separately if their water company doesn’t deliver wastewater services.
The water industry has called for bills to rise by an average of 33% over the next five years, starting from the next financial year (2025-2026). But we’re unlikely to know the final figure until December following a consultation period.
The average bill is set to increase by a forecasted £27.40, external in the current financial year (2024-25) to £473, according to Ofwat – something water companies attribute to having to invest more in their networks.
Nevertheless, bills remain below what they were in 2019-20 when they stood at £503 a year.
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