Finance
UK competition regulator curbs water bill hikes to 2.2% for some firms
Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: March 10, 2026
Quick Summary
The UK’s Competition and Markets Authority (CMA) independent panel slashed nearly 83% of requested water bill hikes, approving only £463 million in extra revenue—limiting the average household increase to just 2.2% rather than the higher raises firms sought.
UK Competition Regulator Caps Water Bill Hikes at 2.2% for Select Firms
Regulatory Decision on Water Bill Increases
Overview of the CMA Panel's Ruling
March 10 (Reuters) - The British competition regulator said on Tuesday that an independent panel had rejected most of the bill increases sought by five water companies, allowing the average customer bill to rise by 2.2% instead of the larger hike the firms requested.
Details of Revenue Allowance
The Competition and Markets Authority (CMA) panel has allowed the water companies just 463 million pounds ($623.11 million) of the 2.7 billion pounds in extra revenue they had sought, cutting 83% of their funding requests.
Comparison to Previous Decisions
The decision is a revision of the CMA's October decision, which allowed the companies an additional 556 million pounds in revenue, raising customer bills by 3%.
Companies Involved and Appeals
Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water have appealed the water regulator Ofwat's decision to limit utilities' ability to raise their bills by more than 36% over a five-year period to 2030.
Statement from the Independent Panel
"We've rejected most of the bill increases water companies asked for but allowed limited extra funding where that's genuinely needed, balancing concerns about affordability with the need to secure our water supplies and cut pollution," said Kirstin Baker, chair of the independent group.
Additional Information
($1 = 0.7431 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Rashmi Aich)
Key Takeaways
- •The CMA panel allowed only £463 million of the £2.7 billion extra revenue water companies requested—about 17%—curbing bill increases significantly.
- •This latest ruling revises the CMA’s October provisional decision, which had allowed £556 million in additional revenue and an average 3% bill increase.
- •The panel balanced affordability concerns with infrastructure and environmental needs, amid appeals by Anglian, Northumbrian, South East, Southern and Wessex Water to exceed Ofwat’s 36% five‑year limit.
Frequently Asked Questions about UK competition regulator curbs water bill hikes to 2.2% for some firms
1Why did the UK competition regulator limit water bill increases?
The regulator aimed to balance affordability for customers with the need to secure water supplies and reduce pollution, approving only essential funding.
2How much will average water bills rise for affected customers?
Average water bills for customers of the five companies will rise by 2.2% instead of the larger increases initially proposed.
3Which water companies were affected by the ruling?
Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water are impacted by the regulator's decision.
4How much extra revenue were the water companies seeking?
The five water companies collectively sought an additional 2.7 billion pounds in revenue from bill increases.
5What was the outcome of the water firms' appeal to Ofwat?
The companies appealed Ofwat's decision but the CMA panel only allowed a small portion of their requested increase after reviewing the case.
