Welsh Water has announced that their customers will see a £14 increase in their bills from April. This will mean that the average bill for a household will be £499 a year, making it the second highest in Wales and England.
Other water companies in Wales include Hafren Dyfrdwy, part of Severn Trent, in north-east Wales which will see average bills increase by £41 to £372 a year. The average household in Wales and England will see bills go up by £31 to £448.
The most expensive water bills in the UK are in the south west of England where Wessex Water charges and average of £504.
It comes after industry body, Water UK, announced on Thursday morning that households in Wales and England would see the largest increase to their water bills in almost 20 years from April. The Consumer Council for Water (CCW) has said that such increases will bring more uncertainty to struggling households.
During their announcement on Thursday, Welsh Water said that the rise is due to the significant increase in the rate of inflation, which is running at a 40 year high. As a result, the not-for-profit company has launched a new scheme that will allow some households that qualify for the exemption to receive a three month 'change free' period.
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This will equate to a discount of around £100-£120 on the average bill. The pilot scheme is being trialled across Rhondda Cynon Taf and Denbighshire until June before a decision is taken on a wider roll-out.
Following the announcement, the Welsh Water’s Chief Financial Officer, Mike Davis, said: "We know that many working customers in the communities we serve are struggling as they face increased pressure on household budgets. Our pilot scheme is designed to provide eligible households with financial breathing space. Anyone living in the Denbighshire or Rhondda Cynon Taf areas who thinks they may benefit from the scheme is advised to get in touch.
"The increase in our household bills in 2023-4 is directly the result of inflation which is currently running at the highest level seen in 40 years. Whilst we have absorbed as much of these costs as possible, we are not immune to these pressures."
Consumer groups warned the rise could prove the tipping point for the one in five customers already struggling to pay. But Water UK argued that water bills remained lower in real terms than they were a decade ago and said this year’s increase reflected higher energy costs, with water firms using around 2% of the nation’s electricity.
Firms were set to invest a further £70 billion to "eliminate harm" from storm overflows and increase water supplies by building new reservoirs and national water transfer schemes, it said, adding that they were "acutely aware of the impact of price rises on lower income and vulnerable customers" and had recently increased the level of support they offered by more than £200 million.
Water UK director of policy Stuart Colville said: “With an average increase of around 60p a week, most customers will again see a below-inflation increase in their water bill. However, we know that any increase is unwelcome, particularly at the moment.
"That is why companies are also releasing an extra £200 million to help those that may be struggling. Anyone with worries should contact their water company or go to supportontap.org for advice, and it’s worth remembering that water companies will never cut anyone off, or make them use a prepayment meter.
"Next year’s bills will support what is already the highest level of investment on record, with a further £70 billion set to be spent over coming years on building new reservoirs and ending overflows into rivers."
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