Northumbrian Water confirms bills will need to rise to pay for sewage investment

That was the word from Northumberland Labour leader Coun Scott Dickinson following warnings water bills would need to go up to solve the issue.

It comes after Northumbrian Water confirmed bills would need to rise to pay for a £1.7 billion environmental programme to stop storm overflow spills.

Last week, water companies across the country apologised for repeated sewage spills, and pledged to invest a collective £10 billion across this decade in what is being described as the biggest modernisation of sewers since the Victorian era.

While the investment will initially be funded by shareholders, it is likely the costs will be recouped from as-yet undecided increases in household bills. With many families already struggling, many campaigners have hit out at the water companies for a perceived failure to deal with the issue in the past.

Coun Dickinson said: “These private companies have made tens of millions for years, each and every year and therefore they must pay the price for failure themselves and not move costs to ordinary families. This is outrageous, as we see families on the breadline paying for water and to see shareholders divide millions between them why should people be forced to pay for the clean up operation.

“Across the north, foodbank usage is through the roof, evictions are high, unemployment is increasing not to mention utilities and basics costing a fortune. You cannot expect the consumer, made up of hard-working regular families to pay more to sort out this mess. Put some of the profits back in.”

In October, Northumbrian Water – the company that supplies water to homes and businesses North East – paid its first dividend to its overseas owner in three years after an increase in revenue.

The company is owned by CK Infrastructure Holdings, based in Hong Kong, and paid out an interim dividend of £58.2m and a final dividend of £55.4m after revenue increased to £780.1m in the financial year ending March 2022.

The company has been rated as four out of four in its environmental performance rating, and is described as an “industry leading company”. However, figures obtained by campaign group Surfers Against Sewage said that in 2021, the company made a total of 36,483 sewage discharges for a total of 220,560 hours.

Responding to Coun Dickinson’s comments, Northumbrian Water defended its environmental record and pledged to keep bills affordable – but did confirm bills would need to increase.

A spokeswoman for the company said: “We share our customers’ passion for our coastline, rivers and lakes, and although we’re proud to have a strong environmental record, we are striving to do better. We already have 32 out of our 34 bathing waters rated as good or excellent, the lowest level of pollutions in the country and the highest possible 4 star rating for our environmental performance from the Environment Agency.

“But we know we need to do more and we are investing more than £80 million towards reducing our use of storm overflows and upgrading our wastewater network between 2020 and 2025.

“From 2025 to 2030 we will invest a further £1.7 billion in a massive environmental programme to stop storm overflow spills and improve the environment. Because of this huge investment, we will need to borrow more, our shareholders will have to put in more money and our bills will need to increase. We expect our combined bills to still be amongst the lowest in the country.

“We know that any rise in bills will not be welcome, and we’ve worked hard to keep our services affordable, limiting this increase to only what is absolutely necessary and making sure financial support is available for anyone who needs it. Last year we helped support more than 60,000 customers financially and we’d encourage anyone who feels like they are struggling to contact us.

“Earlier this month we were voted the most affordable and trustworthy water company by customers in the CCW Water Matters Report 2023 and we are determined to continue to meet the high expectations our customers rightly have. We’re focused on finding innovative and less expensive ways of tackling the issues our customers care about.”