Ofwat tells water firms they must cut bills over the next five years
Water firms in England and Wales must cut the average household bill by £50 - or 12% - over the next five years, the regulator has said.
In a report published on Monday, Ofwat said the average bill will fall by 12% before inflation as part of a price review conducted every five years.
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%.
The decision is part of Ofwat's approval of a huge £51 billion investment plan for water companies in the highly regulated sector.
The regulator also demanded that leaks are cut by 16% to transform the industry and improve efficiency, as part of a £6 billion cost-cutting exercise.
Its package of changes, which has been a year in the making, also includes £13 billion earmarked for "new and improved services that go above and beyond water companies' day-to-day operations" including £1 billion on cutting the impact from flooding.
It also includes a commitment from water companies to produce zero net carbon emissions by 2030 and reducing leaks by 16% by 2025.
Building work includes a new reservoir in Hampshire and the construction of a pipeline connecting water supplies from North Lincolnshire to Essex.
The framework, which comes into effect on April 1 2020, follows draft determinations set out in July.
Water companies had previously warned they could challenge any orders made by Ofwat.