Water bills are set to drop over the next five years after action from the water supplier regulator, Ofwat
Water bills across the UK are set to fall by £50 over the next five years, following new changes announced by the Office of Water Services (Ofwat).
In its price review for 2020-2025, Ofwat revealed that water companies in England and Wales must invest £51bn in improving services.
The regulator has ordered suppliers to cut water leakage by 16% over the next five years. It says this will save enough water equivalent to all the needs of homes in Birmingham, Cardiff, Leeds, Liverpool and Sheffield.
Ofwat has also required water companies to identify and help an additional two million customers in need of extra support as well as investing over £1bn to protect communities at risk of flooding.
The changes, which are due to come into force from 1 April 2020, are set to add an extra £6m worth of investment each day in water services.
Ofwat chief executive, Rachel Fletcher, says: "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.
"They will be investing the equivalent of an extra £6 million each and every day to overhaul services, strengthen their infrastructure and improve our natural environment. And at the same time, customers’ bills will fall by an average of £50 before inflation."
Can you switch water provider?
Unlike other utilities such as energy, you don’t have any choice over who supplies your water. The water company that supplies your water will vary depending on the area that you live in.
In 2002 the UK Government announced that it wouldn’t allow household customers to switch water companies as the system would be too complex to regulate.
If you’d like to find out the water supplier for your area go to www.water.org.uk and enter your postcode.