Anglian Water presses watchdog to allow it to charge higher bills than granted by Ofwat

Anglian Water is pressing for the UK’s competition watchdog to allow it to charge customers higher bills over the next five years than regulator Ofwat has allowed.

The water company has asked Ofwat to refer its ruling on its 2025-30 business plan to the Competition and Markets Authority (CMA) as it says the restrictions imposed would put “long-term investment and resilience at risk”.

Anglian Water’s original proposal was to hike bills by 32 per cent, from an average of £491 to £649 by 2030.

But Ofwat told it in December it would only allow a 29 per cent rise, to £631, over the period.

Announcing the decision to seek the CMA’s involvement, Anglian Water CEO Mark Thurston said: “The government has made clear its priority to drive growth to stimulate the economy and has already highlighted the critical role water plays in this.

“In the East of England, with four of the fastest growing cities in the UK, as well as the Cambridge-Oxford Arc, the levels of investment needed are significant.

“This resulted in our largest ever business plan, worth £11billion, with one of the lowest corresponding bills increases and largest packages of customer support. It was created in collaboration with our customers and other stakeholders, who recognised the need for greater investment in this five-year period, but also the decades following.”

He added: “Unfortunately, after extremely careful consideration, the Anglian Water board has concluded that Ofwat’s final determination falls short of its own stated aims, and having already factored in nearly £1billion of efficiency savings, it means that additional pressures in the regulatory settlement are unacceptable.”

Anglian Water, which serves seven million people, is developing two new reservoirs in the Fens and Lincolnshire to supply nearly three-quarters of a million people and futureproof against water scarcity.

It also plans to renew 1,000km of water mains.

But the decision to seek ever higher bills will infuriate customers and environmental campaigners, who argue water companies are being rewarded for failure.

In January, South Cambridgeshire MP Pippa Heylings described the 29 per cent hike granted by Ofwat as “insulting and a kick in the teeth for customers”, given the pollution of waterways over which Anglian Water has presided.