Isle of Wight households face having to fork out another £43 a year for water and wastewater services from April 2027 – on top of the significant bill increases Islanders are already enduring.
Southern Water customers are facing the biggest additional bill increase of any water company covered by new proposals published by regulator Ofwat.
The latest increase would see the average bill £43 higher in 2027-28 than previously determined, as Southern Water seeks additional funding for investment across its network.
By 2029-30, the additional impact is expected to be £37 a year above the amount previously determined.
It comes after Southern Water customers on the Isle of Wight were already hit with substantial increases to their water bills.
As previously reported by Island Echo, Ofwat’s December 2024 determination envisaged the average Southern Water bill reaching £642 a year by 2029-30 – 53% higher than the £420 figure at the time.
The latest £43 figure is an additional impact on top of the previously determined bill, rather than part of that original increase.
Ofwat’s new Draft Determination would allow Southern Water £687.61million of additional expenditure between 2025 and 2030, including £161.95million of additional revenue during the current price-control period.
The regulator says that, across the water sector, the extra investment is intended to safeguard services and assets, accommodate growth and address issues including so-called ‘forever chemicals’.
For Southern Water, the proposals include additional investment relating to asset health and major schemes. Ofwat also specifically identifies the Sandown Isle of Wight Water Recycling Plant among the schemes included in Southern Water’s submission.
However, Ofwat’s funding decision is separate from the planning process and does not grant planning permission for works at Sandown. Planning application 25/01619/FUL has not been approved.
The regulator has not accepted all of the additional expenditure sought by Southern Water, with some of the company’s submission rejected as either outside the scope of the process or not sufficiently evidenced.
Ofwat is also proposing safeguards aimed at ensuring customers do not pay twice for asset improvements, including the ability to claw back funding in certain circumstances.
The figures remain provisional, with Ofwat currently consulting on its Draft Determinations.
The consultation will close on 24th September, with Final Determinations expected in December. If confirmed, the impact of the additional in-period funding on customer bills would begin from April 2027.
This is getting beyond a f”cking joke now. We’re paying the highest ever amount for water but getting less of a service. I reported a mains leak a couple of weeks ago and after a lot of back and forth they said they were going to fix it but not until the following day, It was gushing about 60-70 liters a minute. Absolute scumbags.