Water bills are set to rise by a higher than proposed average of £31 per year over five years from April, the industry regulator has said.
Ofwat said the increase was enough for water companies in England and Wales to pay for upgrades and reduce sewage discharges.
The increase is higher than the £19 per year Ofwat proposed in July, but is lower than water companies had requested.
It comes amid public anger over sewage discharges into waterways and a continuing squeeze on household finances.
The regulator said the bill increases would pay for £104bn upgrade for the sector.
David Black, Ofwat chief executive, said the regulator was “acutely aware of the impact that bill increases will have for some customers”, adding that water firms now needed to “rise to the challenge” of making a “significant improvement over time to justify the increase in bills”.
The bill hike varies by region. Southern Water customers will be hit by the biggest increase, with bills going up 53% – £642 on average – by 2030. Wessex and Northumbrian Water bills will rise by the smallest amount – 21%.
Thames Water, which is struggling under a huge debt pile, will be able to charge customers 35% more, with bills going up to £588.
