Consumers in England and Wales could see a 5% drop in water bills between 2015 and 2020 under draft proposals published by Ofwat.
The figure, which excludes inflation, is based on the regulator’s draft determination on price controls.
Water companies are expected to invest more than £43 billion – or almost £2,000 for every household – on water and sewerage services across England and Wales in an attempt to improve service.
The investment would reduce supply interruptions time by 40%, bring cleaner water at more than 50 beaches and save more than 340 million litres of water a day by promoting efficiency and tackling leakages, Ofwat said.
Cathryn Ross, Chief Executive of Ofwat added: “This is good news for customers – with bills held down and better service.
“Delivering for customers rather than ticking regulatory boxes will drive what companies do over the next five years. Some will find this tough but companies which really stretch themselves will reap the benefits of increased customer trust and confidence.”
Ofwat will publish its final decision at the end of the year following a consultation.
Earlier this month the watchdog urged three water companies – Bristol Water, Thames Water and United Utilities – to reconsider the prices they plan to charge customers for certain services.