Water bills will rise above inflation next year

Friday 06 December 2024

Inflation-busting water bill increases are on the way as Guernsey Water looks to fund investment in the network and stem losses.

From 1 January household bills for metered customers will rise by around 11%, and for unmetered customers it will increase by around 12%.

This means that household water and wastewater charges combined will be on average £1.65 per day for metered customers, and £2.44 per day for unmetered customers. In full, that would equate to £602.25 per year, and £890.60 per year respectively.

Guernsey Water say the increases are necessary due to the impact inflation has had on the utility company. They add that bill increases had been kept to a minimum, but after several years of financial losses, steps needed be taken to ensure the utility can continue investing in essential services.

Several other issues have also impacted the company, with an investment of £2.8m in new tankers among them. Hopes are this will improve reliability and reduce future maintenance and running costs. 

Guernsey Water managing director Steve Langlois said that the typical customer will see water bills rise between £5 and £8 a month next year.

"Our job is to provide high quality drinking water and effective drainage. That sounds quite simple, but there's an awful lot that goes on behind the tap and the sink, and all of that requires continual investment in the extensive network of pipes and pumps and treatment sites, that have evolved over the last 100 years, and the cost of that investment has gone up significantly.”

A range of cost-cutting measures, and bringing in money via a loan, looks to attempt to curb the increasing cost of delivering services. Guernsey Water says that by borrowing to fund some of this investment, they will spread out the cost to customers over time. There has also been a change in how the island maintains the wastewater assets, which they say delivered a saving of £325,000 last year.

Pictured: Guernsey Water MD Steve Langlois at the Brickfield reservoir. 

Mr Langlois is aware the decision to increase prices will not be a popular one, but knows it is borne of necessity.

“Nobody welcomes price increases. And you know we do understand that, and we haven't taken the decision to increase bills slightly, but it is needed to fund essential investment in the water and wastewater infrastructure, that we do rely on every single day.

“We understand it could be difficult. We would encourage anyone who does have difficulties with paying their bill to contact our customer services team. There are things that we can do depending on the individual circumstances. So if you contact the team and talk to them and explain, they'll do everything that they can to help”

It comes as Guernsey Water has continued that investment in the overall water supply system, to future proof the island’s water supplies.

“This year, we're investing around £6.3m into infrastructure. Part of that is an ongoing project to refurbish St Saviors water treatment works. It's a major project, very complex, delivered largely in house by our teams and by on-island contractors, so we’re supporting the local economy. 

“That project is progressing really well. We've refurbished the wastewater pumping station at La Piette by Salarie Corner. We've replaced a water collection main in Moulin Huet, another important project for making sure, that we can collect enough water to provide water supplies. 

“All of this has happened this year, as well as the first stage of the ring main upsizing project. So that's around £6.3m, and we're expecting to invest a similar amount about £6.4m next year.”

There are 450km of water pipes beneath the island's roads, some of which is 70/80 years old, he said.

"They're made up of different materials, and from time to time, the older pipes do burst, and we can't replace it all in one go. We can't dig up the whole of the island's road network at the same time. So we have to do a little bit each each year and we concentrate on the older pipes, the ones that have burst more frequently. It's really important that we have that ongoing cycle of investment in renewing all of those assets. 

“That's just the drinking water network. There's the sewerage network, there's water collection stations, wastewater pumping stations, the water treatment works, Belgrave Wastewater Center. It really is a vast network of water and wastewater assets that we rely on every single day, and we have to keep that investment going.”