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Daily Mirror
Daily Mirror
Business
James Andrews

Water bills to be slashed for households after industry watchdog steps in

Families are get a big cut in their water bills after a ruling from the industry watchdog.

Regulator Ofwat has revealed households can expect to save 12% on their water bills over the next five year, at an average of £50 each, as it laid out its latest investment review.

The regulator added that water companies must spend £51 billion on upgrades and improvements over that period.

Ofwat chief executive Rachel Fletcher said: "Today we're firing the starting gun on the transformation of the water industry backed by a major investment programme to deliver new, improved services for customers and the environment and resilience for generations to come.

"Now water companies need to crack on, turn this into a reality and transform their performance for everyone."

Bills should fall by and average of £50 each (iStockphoto)

The specific reduction in bills depends on which company a home-owner is with.

Northumbrian customers will see an average fall of 26% of their bills whereas Hafren Dyfrdwy customers will see an average reduction of just 3%.

Of the £51billion spending package, around £13 billion will go to providing "resilient services" and a better environment in the face of climate change and a growing population.

There are plans to cut down on leaks - saving enough enough water to meet the needs of everyone in Birmingham, Bristol, Cardiff, Leeds, Liverpool and Sheffield - to help two million more customers in need with support and to spend £1 billion to protect communities at risk of flooding.

Ofwat also outlined plans to cut pollution into rivers and streams by almost a third and provide £450 million to explore new water resources such as reservoirs or moving water from to places with less in the event of dry weather.

Tony Smith, chief executive of the Consumer Council for Water, said: “Most customers will see this as a good deal but more must be done to make sure everyone can afford their bill and ensure there is sufficient investment in safeguarding these essential services long into the future.

“Water companies have had it too good for too long. At first glance it appears Ofwat has listened to our repeated calls for it to get tougher and tip the balance back in favour of customers.

"But we’ll be keeping a close eye on the performance of companies to make sure customers are not short-changed.”

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