Southern Water bills hike "disgrace" as councillor calls to stop sewage releases and cut profitable bonuses
Huge five-year Southern Water price hikes on bills have been branded as a “disgrace” - with a Portsmouth councillor calling on the company not to punish customers for their “failure”.
Liberal Democrat Cllr Darren Sanders, of Baffins ward, took aim at the much-maligned water company after utility bill increases were announced yesterday morning (December 19). Southern Water customers will see their prices rise by 53 per cent over the next half decade.
“It’s a disgrace,” Cllr Sanders told The News yesterday afternoon. “Langstone harbour is regularly polluted by this company, Southampton and Eastleigh have run out of water this morning. It is unbelievable that they are asking the people that are suffering from discharges to pay the cost of their failure. These companies should become public interest companies so they put people not profits first. The Tory privatisation of the water system is a failure and we need to have something that puts our lives, our seas, our rivers first, not shareholder dividends.”
Ofwat said Southern Water customers would see an average household rise of £221 before inflation over the next five years. This would include an average increase of £186 between 2024-2025 and 2025-2026. The company wanted to increase bills by a further 16 per cent - £126 - but the regulator reigned this in.
This increase is the highest from any company in England and Wales. Thousands of people had no access to water yesterday morning due to a technical fault at the Testwood water supply works, with customers claiming they had little support from Southern Water. Ofwat previously said the price increases would pay for a £104bn upgrade of the water sector to deliver “substantial, lasting, improvements for customers and the environment”.
The average household will see an increase of £31 a year, households will face a heavy average hike of £86 or 20 per cent in the next year, excluding inflation, with smaller percentage increases in each of the next four years. The average bill will rise by a total of £157 or 36 per cent over the next five years.
Southern Water has faced several problems which have knocked public confidence. The company was fined £31.9m by Ofwat for missing targets on reducing pollution, leaks and supply interruptions, with customer satisfaction also falling. Local complaints include the extended disruption along Eastern Road due to a burst sewer pipe, as well as sewage discharges along the Solent.
Cllr Sanders, cabinet member for housing and tackling homelessness, said: “Why don’t they cut bonuses, why don’t they cut profits, many of these companies are run by private equity firms who charge a great deal of money and who take money out of the company. Before asking people who suffer from their sewage pollution to pay more they should scrap bonuses, scrap huge wage hikes for those in charge and cut profits. Do that first and then people might be ok to pay a small increase in their charges but because these companies appear to be tone deaf to people's worries they want the people who suffer to pay first.”
When approached for comment, Southern Water referred to a statement from CEO Lawrence Gosden on its website. He said: “We note Ofwat’s publication of its Final Determination for 2025-2030. It’s important that we take time now to review all the detail carefully, as we seek to understand the level of support the regulator has shown for our ambitious investment plan.
“We’re very conscious that a rise in bills isn’t easy for our customers, essential though it is to deliver the improved performance and infrastructure that’s required. So we’re significantly expanding the wide range of support available for those customers who are most in need. Our plan was driven by the views of thousands of Southern Water customers. That’s why we need to be sure that what’s been set out in Ofwat’s Final Determination meets the expectations of our communities -- in protecting the environment and building a truly resilient network for future generations. We’ll say more about Ofwat’s Final Determination in due course.”
Portsmouth Water customers will see their bills rise by an average of £41 over the next five years before inflation, including an average rise of £27 in the first year. Ofwat said: “We will continue to hold Portsmouth Water to account against its targets for improved service for customers and the environment and expect it to report on its performance every year.
“If the company does not deliver the expected outputs and outcomes, this will be reflected in lower bills for customers. Where it delivers a better level of performance, it will be allowed to collect more, to reflect the additional benefits to customers it has created.”