Water companies in England and Wales explore ‘surge pricing’ during drought

Suppliers could factor water scarcity into charges as part of Ofwat proposal to reduce consumption

Water companies could be allowed to raise bills for customers during periods of drought under proposals being considered by the sector’s regulator for England and Wales.

Suppliers would be permitted to factor “water scarcity” into bills as part of efforts to reduce consumption under Ofwat’s plans, which are being likened to surge pricing – the practice where private hire firms raise taxi fares at times of higher demand.