Water companies are planning to hike household bills in response to tougher regulations on dumping sewage in rivers and oceans.
Water bills could increase by as much as 40% come 2030 as a result, The Times reported, prompting rises from £450 to £680 a year on average on top of inflation.
Water companies, which have faced intense scrutiny in recent months over illegal practices of dumping sewage into the UK’s waterways, last month apologised for sewage spill issues and promise £10bn of investment, but admitted they wanted customers to pay for it.
Following a host of fines, the likes of United Utilities Group PLC (LSE:UU.), Pennon Group PLC (LSE:PNN, OTC:PEGRY) and Severn Trent PLC (LSE:SVT) were told by regulator Ofwat to submit investment plans for tackling pollution.
However, increased spending on infrastructure such as storm overflows is some companies to request bill hikes averaging 25%, reports said.
Environment secretary George Eustice downplayed the threat of bill rises, telling the BBC that companies were “probably” suggesting higher figures as a negotiation tactic.
South East Water is proposing the highest rise of 39%, while Wessex Water and Thames Water and would lift charges by 30% and 20% respectively under the reported proposals.
Thames Water could meanwhile be approaching the brink of temporary nationalisation, with the government saying on Wednesday that preparation had been made for a “range of scenarios” relating to the struggling firm.
Thames Water supplies some 15mln people across London and the Southeast, but fears over the company’s £14bn debt-pile have led to talks of a potential nationalisation.
English and Welsh water firms were originally publicly owned, with the 1989 Water Act paving the way for their privatisation.