Consumers in England and Wales will soon see their water bills rise by an average of 4.1%.
The increase, which will come into force in April, will result in bills rising to an average of £342 a year for water and sewerage.
Increase could have been higher
Ofwat, the water regulator, pointed out that it had set limits on water companies which prevented the rise from being higher.
Regina Finn, Ofwat chief executive officer, said: ‘We needed to strike a balance between vital investment and keeping bills down. Our work has kept customers’ bills around £100 lower than they would otherwise have been.’
The Consumer Council for Water (CCW) said it was pressing the government to help consumers struggling to pay their water bills.
Future prices set soon
Water companies and regulators are currently in discussions that will set prices for 2010 to 2015.
Dame Yve Buckland, Chair of the CCW, said: ‘We are working hard to make sure that water prices for the next five years deliver good value for money and are acceptable to customers.’
For advice on cutting your water bills, see the Which? guide to saving water.
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