WATER privatisers are treating the system as an ATM, campaigners said today as South East Water (SEW) confirmed bills will rise to an average of £324 a year from April.

The increase comes as the company faces an Ofwat investigation after thousands of homes and businesses were left without water in recent weeks.

About 30,000 properties across Kent and Sussex were affected earlier this month, which SEW blamed on Storm Goretti causing burst pipes and power cuts. 

This followed a similar incident in December, when 24,000 customers in Tunbridge Wells were left without drinking water for up to two weeks.

Ofwat is also investigating whether SEW breached customer service obligations, marking its first probe under the regulator’s customer-focused licence condition.

If breaches are confirmed, the company could be placed into special administration.

Water UK said that Ofwat has approved a new reservoir in Kent after being “talked about” for 80 years, with SEW expected to carry out its planning and design work.

Household water bills across England and Wales are rising by an average of 5.4 per cent in April, with SEW’s 7 per cent increase still requiring approval from the Competition and Markets Authority.

We Own It lead campaigner Sophie Conquest said: “The recent increase in bills is yet more evidence that shareholders are simply treating our water system as an ATM. 

“Billpayers are paying more and more for a broken service and sewage-filled rivers, all while shareholders continue to profit. 

“This government promised to tackle the cost-of-living crisis, yet more people than ever will be unable to afford their water bills.

“By bringing water into public ownership, we can stop shareholders from taking money out of billpayers’ pockets, and bring the cost of water down.”