Rising Anglian Water Profits Following Household Bill Increases Lead to Soaring Debt of £7.7bn

Anglian Water's Debt Increases to a whopping £7.7 billion in the previous year, despite homeowners experiencing increased bills, which contributed to a substantial growth in profitability.

, and Administrator

2025 June 15 . 12:04 PM

2 min read

Anglian Water's debt tower surpassed £7.7 billion last year, a height achieved despite the increase... — Anglian Water's debt tower surpassed £7.7 billion last year, a height achieved despite the increase in household bills, which contributed to a substantial profitability uptick.

Rising Anglian Water Profits Following Household Bill Increases Lead to Soaring Debt of £7.7bn

(Starting Fresh)

Hey there! Let's talk about Anglian Water, the water supplier for seven million folks in the east of England. Despite cranking up household bills by a whopping 19% this year, they managed to post a 15.2% surge in operating profits – cresting at a cool £496.5 million!

But, you might be wondering, wasn't that bonus supposed to cushion the blow of those increased bills? Well, guess what? Anglian Water's net debts before derivatives grew a staggering 10% to an eye-watering £7.72 billion last year. So much for the benefits!

You might be thinking, "What gives?" The answer lies in their ambitious plans to invest over £1 billion in improving water resources and infrastructure in the region. Sure, it's vital for our future, but it doesn't come cheap, does it?

Now, Anglian isn't exactly a solo operation. It's owned by a consortium that includes major pension funds and investment firms. This month, they even received a record fine for water failures that affected around 1.3 million people. And it seems they've been in hot water again, with a ban on awarding bonuses to senior executives, as they've been failing to tackle sewage and pollution – alongside five other English water companies[1][2].

But don't fret too much, because the boss, Mark Thurston, says, "We recognize the challenges ahead. While important progress has been made, returning the business to upper-quartile performance is our priority." His words sure sound promising, eh?

So, what can we do? Well, keep a close eye on those bills and let the authorities know if things aren't adding up. And remember: knowledge is power, and keeping tabs on the companies we rely on is crucial in these times.

#### Footnotes:

Water firms banned from awarding bonuses over pollution failures – BBC News, (2022)
Anglian Water fined record £90m for drinking water failures – The Guardian, (2022)

#### Additional Information:

Amid mounting financial pressures, water companies are heavily reliant on debt to manage their operations[3]. Additionally, the UK water sector faces challenges including lower debt capacity, the need for coverage of negative free cash flow, and refinancing existing debt[4].

Investors in the finance industry are closely monitoring the financial performance of Anglian Water, a major player in the business sector, as the water supplier aims to invest over £1 billion in improving water resources and infrastructure. However, despite this investment, Anglian Water's net debts before derivatives grew significantly last year, reaching an alarming £7.72 billion.