Source: Sharecast
Anglian, Northumbrian, Southern, Wessex and South East Water had appealed against Ofwat's original pricing decision, arguing that the regulator's proposed increases, which averaged 36% over five years, were insufficient to fund infrastructure upgrades.
The CMA has now allowed the firms to raise bills by an average of 3% above Ofwat's baseline, equating to around £12 per year. Individual uplifts range from 1% for Anglian and Northumbrian to 5% for Wessex.
The five companies, which serve over 7m customers, had sought permission to raise a combined £2.7bn in additional revenue, but the CMA approved just 21% of that request, totalling £556m.
The proposals remain provisional, with Ofwat and the water firms invited to respond before a final ruling is made.
"We've found that water companies' requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified," said Kirstin Baker, who chaired the group of experts.
"We understand the real pressure on household budgets and have worked to keep increases to a minimum, while still ensuring there is funding to deliver essential improvements at reasonable cost."
Reporting by Iain Gilbert at Sharecast.com
