According to reports by the British Daily Telegraph on August 15 local time, under the proposal being discussed by the UK Water Regulatory Authority (Ofwat), water companies will have the right to increase prices for consumers during periods of drought, and the ‘scarcity of water resources’ will be taken into consideration in pricing decisions.
According to the plan, suppliers can introduce seasonal price fluctuations, with water fees being higher in summer than in winter. They can also implement tiered charging methods, where users pay a higher price when their water consumption exceeds a certain threshold. According to Ofwat’s consultation documents, many suppliers believe that current regulations limit the implementation of these pricing methods. This adjustment is intended to “relax” these restrictions.
Dried-up rivers in the UK – The Daily Telegraph
Some areas have already started the pilot program. In its trial in Lincoln and Norwich, where about 14,000 households are covered, Anglian Water raised the price of water per cubic meter from £2.69 (about 24.7 yuan at current exchange rates) to £4.39 during May to August, and reduced it to £1.78 (about 16.4 yuan) for other times. Assuming one cubic meter of water is equivalent to about one ton, the peak water price in summer exceeds 40 yuan per ton. Families with low incomes are not included in this pilot program. The company says that about half of the users who participated reduced their water consumption, and it is considering expanding the program. South West Water has also implemented a similar seasonal and stepped pricing system.
A few days before the details of the plan were announced, the UK government announced that four-thirds of England was in drought conditions. 27 million people were restricted by hose bans, and wildfires occurred in many areas. If Ofwat finally approves the new regulations within the next few weeks, they will come into effect from April 2027.
Last Thursday, five suppliers were approved by Ofwat to increase their bills beyond the previously agreed amounts, in order to fund improvements to infrastructure. British Prime Minister Andy Burnham said that water companies are treating consumers as “blank checks”.
Water industry activists and former The Undertones band singer Fergal Scull criticized that suppliers are “again” punishing consumers due to their own negligence. He pointed out that these companies have legally been obliged to help users reduce water usage for forty years, but they have “completely failed” in this area. They have also failed to keep rivers clean and properly handle wastewater. Scull accused Ofwat of “once again doing nothing” and failing to control an industry that is clearly out of control.
Representing the supplier, Water UK responded that in addition to addressing leaks, the industry should also consider “rewarding users through water bills.”
A Ofwat spokesperson said that efficient water use "is in the interests of everyone, including companies." The proposed initiative "will support suppliers in taking into full consideration the scarcity of water resources and water efficiency when setting prices."
Currently, no companies have officially announced plans to implement large-scale floating pricing. The British government aims to reduce per capita daily water consumption from the current 136.5 liters to 122 liters by 2038.
