Water bills in four areas of the country will drop by around £34 after a row over the future of the industry was settled by an official body.
The Competition and Markets Authority (CMA) has announced its final decision on price controls for Northumbrian, Yorkshire, Bristol and Anglian water companies after a dispute between the companies and the regulator Ofwat.
Ofwat had wanted the water companies to reduce bills by around £50 but the companies said this would reduce their ability to invest in environmental measures and keeping water supplies safe for the future.
Now the CMA has agreed a compromise which reduces the amount the companies can give to shareholders, though it said the firms would also be able to pay for improvements in priority areas such as security of supply and leakage.
Thirteen of the 海角视频’s 17 water networks had accepted Ofwat’s original findings but the four utility companies said the original Ofwat plans put their investment plans at risk.
Bristol and Northumbrian said they would be reviewing the CMA’s final conclusions.
A Yorkshire Water spokesman said: “We can now draw a line under the last price review and start to work collaboratively with government and regulators to ensure that we restore the balance to the sector and deliver long-term resilience whilst protecting customer interests.”
Ofwat’s original plans would have seen customers save around £50 on their annual bills. While the CMA’s decision will see a smaller reduction, it will still mean customers spend £34 on average less on their water bills than in 2019/20.
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Consumer group Citizens Advice said the deal was a step forward, but “should have gone further”.
Alistair Cromwell, acting chief executive of Citizens Advice, said: “Today’s announcement is progress and a better deal for consumers than the CMA originally proposed. However, the CMA should have gone further in cutting back the excess profits made by water companies.”
The CMA said the move should also allow the companies to finance their activities and invest in long-term infrastructure, also providing increased allowances to pay for improvements in priority areas such as security of supply and leakage.
Kip Meek, chair of the CMA’s independent group, said: “In coming to our decision, we have sought to balance keeping bills low with the need to maintain a good quality of service and to invest in critical infrastructure for the future.”