‘£50 off our water bills’ as watchdog turns up pressure

HOUSEHOLD water bills are set to fall by an average of £50 over the next five years under a crackdown by watchdogs.

Regulator Ofwat has told firms to cut bills and increase daily investment by £6 million to tackle leaks and other problems.

This equates to a £12 billion extra spend between 2020 and 2025.

Ofwat said the money should be put towards cutting sewage flows into rivers and the sea by more than a third, and to support discounts to 1.5 million struggling customers.

The English and Welsh firms must also cut pipe leakage by 17 per cent by 2025 – enough water to meet the needs of Manchester, Leeds, Cardiff and Leicester combined.

The amount individual households will save varies. Bills would fall by £110 for a typical Northumbrian Water customer compared with 2017-18 costs.

But they would drop by just £7 for Hafren Dyfrdwy customers in North Wales. Ofwat chief executive Rachel Fletcher said the plans will ensure better services, a healthier natural environment and lower bills.

Water companies have to set out their spending plans for the next five years but so far only Severn Trent, United Utilities and South West Water have satisfied the watchdog. Yesterday’s announcement by Ofwat set out what Britain’s other 14 companies must do.

Mrs Fletcher said: ‘We have seen three water companies leading the way and we now want the rest to show the ambition and drive to deliver this new era for customers and the environment.’

Companies must also encourage customers to install smart water meters and cut consumption.

And they should start strategies to deal with cyber-attacks and to prepare for extreme weather.

Last year 60,000 customers had their supply cut for over 12 hours due to thawing after the Beast from the East winter storm burst pipes.

But Tony Smith, chief executive of the Consumer Council for Water, warned that not everyone will see their bills fall when inflation is taken into account.

He added that 3 million Britons struggle to pay their bills and only half will get financial assistance under the regulator’s proposals.

The industry was privatised in 1989 but has faced increased criticism for rising bills, persistent leakage and pollution spills.