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Why is my bill going up?

We know a price rise is never welcome and will be hard for many, alongside other cost of living increases. We want to explain why we need to increase bills now to deliver the things you've told us matter the most. We also set out in detail the range of support we're offering to those who need it.

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Our improvements so far

We’ve already started making some big changes to improve our performance so we can provide a better service.

  • Improving process and storage at our wastewater treatment sites, enhancing the quality of water we return to the environment, increasing the amount of wastewater that can be treated and reducing the number of storm overflow releases.
  • Improving the reliability and quality of water services at our treatment sites across the region.
  • Carrying out sewer sealing work to protect communities from groundwater flooding and the environment from any pollution.
  • Trialling natural drainage solutions and redirecting illegal sewer connections to prevent pollution, reduce flooding and storm overflow releases.
  • Extending our sewer network, enabling new development.
  • Completing river catchment surveys to see where we can restore, enhance and protect our water sources.

So why are bills increasing now? 

Since 2020, your bills were reduced (by around 6% per year) because of penalties from our regulators, resulting in rebates on your bills.

Our shareholders paid for this, not customers. They have invested nearly £2 billion (since 2021) to speed up improvements to your services – that’s around £1,500 per household over the past five years. At the same time, we haven’t paid our shareholders anything since 2017. 

We need to fundamentally change the way we think about capturing, treating, supplying, using, and recycling water. It’s our most precious resource and we can’t ‘make’ more of it.

There are a few reasons why your bill is going up

The bill reductions mentioned above only apply until 2025.

Costs for services we use to supply your water and take your wastewater away – like chemicals and energy – have increased alongside other daily essentials.  

Changes to our climate mean we’re experiencing heavier rainfall, which can overwhelm our networks, causing increased flooding and storm overflow releases. We’re already adapting these systems, although it will take time. Our Clean Rivers and Seas Plan is delivering improvements in your area and explains how we plan to deliver more.

A growing population means more built-up spaces and less water being soaked up by the land. This again causes more flooding and storm overflow releases. We need to change the way we deal with this excess water to stop it entering sewers, finding new ways to capture it, soak it up and store it.

We’re also seeing increased pressure on rivers and other water sources, as more people rely on them. We can only take so much water from them before we start to damage the surrounding environment, so we need to find or develop new sources of water. This will increase the cost of treating and supplying it to your taps, as we’ll need to spend more money recycling wastewater, transferring water from other areas of the country or, eventually, even desalinating sea water.

A photo of Ho Liam Yeung examining machinery

Our plans are ambitious

Our 2025–30 Business Plan proposes an investment of more than £8 billion over five years to improve services and it also includes £3.3 billion of environmental projects.

It's the first stage of a major step change, which will see us:

  • Limit our impact on local rivers by reducing the amount of water we take from them.
  • Build new long-term water sources, like reservoirs and water recycling plants.
  • Upgrade our wastewater treatment sites so they’re more reliable and can better support future population growth.
  • Improve water quality in 1,000km of our rivers.
  • Reduce storm overflows at almost 300 locations along our coastline.

These are the priorities that 25,000 of our customers told us were most important to them while we were developing our plans. 

These long-term plans factor in a range of future scenarios so we can phase the development of any new resources; increasing bills to pay for these changes gradually. We need to do this so that future generations don't have to pay for everything in 10, 20 or even 50 years’ time.

What’s going on in my area 

We’re investing £8 billion across our region to 2030. 

In Hampshire that includes an environmental investment of around £1.63 billion, including:

  • Upgrades to another 69 storm overflows to improve the quality of water released to the environment and reduce the number of releases overall.
  • Major improvement schemes at our Otterbourne and Testwood Water Supply Works, increasing the quality and quantity of water leaving the sites and flowing to your taps, while making sure that you have a more reliable service and lower the risk that you’ll experience a loss of supply .
  • New sources of water in Hampshire through the new reservoir at Havant Thicket being built in partnership with Portsmouth Water, new transfer pipelines bringing water in from other areas and a new water recycling plant, all of which will reduce reliance on local rivers for water supplies and protect precious chalk streams for future generations. The new reservoir alone will make 21 million litres of water available by 2031.
  • 174km of river improvements along the Test and Itchen and in the New Forest and East Hampshire.

On the Island alone this will deliver an environmental investment of £270 million, including:

  • Upgrades on another 47 storm overflows to improve the quality of water released to the environment and reduce the number of releases overall by around 60%.
  • Major improvements at our Testwood Water Supply Works that supplies water to the Island, increasing the quality and quantity of water leaving the site and flowing to your taps, while making sure that you have a more reliable service and lower the risk that you’ll experience a loss of supply.
  • A new water recycling plant to provide a sustainable resource of water, making supplies on the Island more self-resilient.
  • 47km of river improvements on the Island.

In Sussex this will deliver an environmental investment of £570 million to 2030, including:

  • Upgrades on another 102 storm overflows to improve the quality of water released to the environment and reduce the number of releases overall by as much as 50% in some areas.
  • Major improvements at our Hardham Water Supply Works, increasing the quality and quantity of water leaving the site and flowing to your taps, while making sure that you have a more reliable service and less risk of experiencing any loss of supply.
  • A water recycling scheme near Littlehampton, to transfer water to the Pulborough area. By 2031 we aim to provide up to 15 million litres per day.
  • Water transfers from our neighbouring water companies SES Water and South East Water that together can provide up to 20 million litres per day.
  • 447km of river improvements across the county.
  • Further improvement to treatment processes and storage at our sites. These will increase the amount of waste that can be treated, and will remove more nutrients, like phosphorus, from the water we put back into the environment, helping to protect local bathing waters and shellfish beds.

In Kent this will deliver environmental investment of around £1.9 billion, including:

  • Upgrades on another 57 storm overflows to improve the quality of water released to the environment and reduce the number of releases overall.
  • Major improvement schemes at our Burham Water Supply Works, increasing the quality and quantity of water leaving the site and flowing to your taps, while making sure that you have a more reliable service and less risk of experiencing loss of supply.
  • New sources of water in Kent through the construction of a new water recycling plant at Aylesford, producing up to 14 million litres of extra water for the region, leaving more water in the River Medway, protecting this water source for future generations.
  • Further improvements to treatment processes and storage at our wastewater sites, continuing to reduce the use of storm overflows in Kent and better control nutrient levels in local rivers and seas, while improving water quality.
  • Sustainable drainage schemes, for example installing rain gardens and water butts and fixing illegal sewer connections, run in partnership with local authorities, which will help to reduce local flooding and the use of storm overflows along the Kent coastline.

What if I can’t afford to pay more?

We’re making it easier to access our social tariff, which offers 45% or more off your total water bill. At the same time, we're doubling our debt matching schemes. We also offer access to a Hardship Fund and capped tariffs. Alongside this financial support, we'll expand the reach of our Priority Services Register from just over 9% to more than 20%. This means more of our customers will receive additional support.

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