Why has my Southern Water bill increased by so much this year?

Customers are being hit with a 53 per cent price increase to their bills over the next five years, the highest increase in the country, and a huge increase compared with other water companies across the country.

As previously reported by The News, the increase will pay for a £104bn upgrade of the water sector to deliver “substantial, lasting, improvements for customers and the environment”, with the area’s infrastructure high on the shopping list.

But why have bills increased so dramatically?

What do I pay Southern Water for?

Customers in the Portsmouth area only pay Southern Water for waste waste services - with drinking water supplied by Portsmouth Water - but other areas of Sussex have both supplied by Southern Water.

Portsmouth Water is also increasing its bills but by a much smaller amount - around £30 a year which is one of the smallest increases in the country - with further rises over the next five years. This will also pay for improvements to infrastructure as well as help with the switch-over to water metering to help preserve drinking water and protect the environment.

Haven't Southern Water had problems recently?

In short, yes. Southern Water has faced several problems which have knocked public confidence. A technical issue at the Testwood Water Supply Works meant some customers were cut off from supply, or had low pressure in their houses and last year customers in Hastings in East Sussex were offered compensation for supply issues in the area. The company was fined £31.9m for missing targets on reducing pollution, leaks and supply interruptions, with customer satisfaction also falling.

Local complaints levelled against the company over the past year include the disruption caused in Portsmouth as a result of the burst sewer pipe which runs along Eastern Road, as well as sewage discharges into the Solent which has impacted water quality. Ofwat place Southern Water’s performance into the lowest category of “lagging”.

The water company also wanted to increase water bills by significantly more to pay for even more improvements but this was rejected by the regulator Ofwat, though Southern Water is appealing that decision.

Southern Water CEO Lawrence Gosden said: “After very careful consideration, our board has decided to appeal Ofwat’s Final Determination to the Competition and Markets Authority. The Final Determination would not enable us to deliver the environmental and performance improvements and new infrastructure that our customers and communities rightly expect.

“The next formal step in the process is submission of our statement of case to the CMA. We’re ready to meet the CMA’s timetable. In addition, to continue advancing investment in the improvements and new infrastructure needed, today we’ve also announced our intention to raise £900million of new equity.”

What will this increase pay for?

A number of huge projects are on the horizon for Southern Water, including the creation of the water reservoir at Havant Thicket being built in partnership with Portsmouth Water. It is also creating a reservoir in East Sussex in the future too which will help with the supply of water in that area.

It is also embarking on a huge project to tackle storm overflows - where untreated water is discharged into the sea to stop the system from overflowing as part of its £1.5bn Clean Rivers and Seas Plan.

Other projects on the horizon include its water recycling plans for Budds Farm in Havant which will see waste water, already treated at the site before it is discharged into the sea, instead recycled into purified drinking water. If the scheme is approved, the purified water will then be used to top up the water reservoir being built at Havant Thicket.

Other infrastructure projects include tackling leaks, replacing aging infrastructure and keeping the sewage pipes clear of blockages.

Are these increases affordable to customers?

There is little doubt that the amount on the bills has come as a shock to many - especially arriving at the same time as increased council tax bills.

The Consumer Council for Water (CCW) warned the increases were “more than what many people can afford”. Chief Executive Mike Kell said: “These bill rises may be less than what water companies wanted but they are still more than what many people can afford. Customers will be hit particularly hard from April with a large chunk of these increases frontloaded into next year – on top of inflation.

“We know at least two in five households will find these increases difficult to afford but the support being offered by some water companies lacks ambition. People want to see more investment, but this must be coupled with a strong safety net for customers who will struggle to pay. The case for a single social tariff to end the current postcode lottery of support has never been more compelling.”

Is there anything I can do to save money on my water bill?

For some people, yes. If you are a small household, then switching to a water meter will almost certainly save you money on both your water supply bill from Portsmouth Water and waste water bill from Southern Water. This is because waste water bills use a calculation based on water supply making both cheaper if you use smaller amounts of water.

You may be eligible for a reduction in your water bill if the following applies to you:

• Your household income is low
• You’ve got three or more children under 19 living at home
• Someone living with you needs more water because of a medical condition

For more information contact both Portsmouth Water and Southern Water. Both also offer support for anyone struggling to pay their bills