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UK water utilities shares rise as bills go up more than inflation

Published 02/02/2024, 10:30
© Reuters.  UK water utilities shares rise as bills go up more than inflation
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Proactive Investors - Water companies will increase the average annual water and sewerage bill to rise by 6% in England and Wales from April, according to its trade body.

In Scotland, water and waste charges will go up by 8.8%, said Water UK.

David Henderson, Water UK chief executive, said the rises would help pay for more than £14.4 billion of investment in the next financial year, the highest annual amount on record he added.

On average, that will mean a bill in England and Wales for water and sewage rising by £27 to 473 a year, while Scottish users will pay £36 a year extra.

Sewage dumping by water companies in rivers and coastal waters has become a national scandal and under duress, the industry has submitted proposals to increase bills by an additional £156 a year to 2030 to pay for remedial work to reduce discharges.

Infrastructure spending would almost double to £96 billion if Ofwat allows the plan, Water UK said.

From April, Wessex Water and Anglian Water will have the highest average bills at £548 and £529 respectively, with Northumbrian customers will see the lowest average bills of £422.

Shares in the listed water utilities all rose today as investors concluded they had got a good deal.

Northwest-focused United Utilities Group PLC (LON:UU), where bills are to rise 8% to £481, was up 1.8% at 1,082p.

South-west-focused Pennon Group PLC (LON:PNN), where customers will see a £2 drop in bills on average in 2024, was up 1.3% at 713p.

Severn Trent PLC (LON:SVT), where bills are rising 6.6%, was up by 1.9% to 2,643p.

Supplying the capital, financially stretched Thames Water is raising bills by 3% to £471.

Read more on Proactive Investors UK

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