Southern Water accused of 'price gouging' after 56 per cent bill hike in Portsmouth

During a full meeting of Portsmouth City Council, retired risk analyst Dr Alan Waring blasted the water company, which is responsible for wastewater services in the city.

The average unmetered Band D property in Portsmouth has seen its bill rise from £349.90 to £546.40 in a single year - a 56.16 per cent increase. This is two and a half times higher than the average increase applied by other water and sewerage companies across England.

Dr Waring called the rise “price gouging”, arguing that the company should have spread the increase over five years, in line with OFWAT’s final determination set out in December last year.

He warned that if such price hikes continue, bills could reach £2,000 annually by 2029/30.

“They’re still appealing to the competitions and markets authority to get at least 83 per cent - so they’re not done with us yet," he added.

He described “price gouging” as a “form of fraud by deception and extortion”, particularly given that Southern Water is a “monopoly supplier” for wastewater services.

The company has previously come under fire after receiving a £126m penalty in 2019 for serious sewerage failures and a £90m fine in 2021 for polluting rivers and coastal waters.

Dr Waring claimed the company is now passing remedial costs to its customers as a result of past “enviro crimes”, and accused Southern Water of promising improvements “without specifying what that means”.

Councillor Hugh Mason, who proposed a motion calling on Southern Water not to repeat the sharp price rise, said he “thought it was a mistake” when he received his increased bill.

“A 56.16 per cent increase in one year without any clear indication of new initiatives that this is going to be spent on to deal with sewerage, just promises.

“We have a right to expect a substantial improvement in the service provided and particularly a substantial decline of discharges directed into Langstone Harbour.”

The motion also calls on the council to request detailed information on the improvements the company intends to deliver.

A Southern Water spokesperson said that bills are anticipated to rise quickest in the first year of the 2025-2030 spending period "before flattening in the coming years”

“We cannot confirm exactly what future bills will look like for 26/27, 27/28, 28/29 and 29/30, until a decision is taken by the Competitions Market Authority (CMA) later this year following our challenge of Ofwat’s Final Determination.”

The company is offering a £37m support package in 2025–26, including an expanded social tariff for 155,000 customers and a “quadrupled” hardship fund worth £1.25m.

They added: “We know a rise in bills is never welcome, especially at times of rising costs for households, but these bills are supporting our biggest investment plan ever – which has been directly influenced by what customers have told us they want to see improve – healthier rivers and seas, a more resilient water supply and an improved customer service.

“Our bills had remained at or below inflation for the previous 10 years, so we need to increase these now to make the upgrades needed to meet expectations and protect the environment.”

The company also highlighted a £170m scheme in Portsmouth as part of a £1.5bn plan to reduce storm overflows, including drainage improvements, sewer upgrades, and community partnerships to “green” local roads.