Water bills in England and Wales are likely to increase by up to 3% a year above the rate of inflation in the next five years, adding to the squeeze on household incomes.
Companies in England and Wales are due to submit their bids for the next pricing round today, after which the regulator, Ofwat, will decide how much they are allowed to charge. Water utilities are under pressure to keep charges down after the eye-watering increases being pushed through by energy companies.
During the current pricing period, water bills have gone up by an average of 4.2% a year on top of inflation.
