Water firms in England and Wales will have to cut the average bill by £50 over the next five years, under plans published by the industry regulator.
Water regulator Ofwat is also forcing firms to invest millions of pounds, aimed at improving their performance. The regulator also wants water firms to cut water lost to leaks by 16%.
Ofwat chief executive Rachel Fletcher said its plan was “firing the starting gun on the transformation of the water industry”.
“Now water companies need to crack on, turn this into a reality and transform their performance for everyone,” she added.
There has been widespread dissatisfaction with the performance of many water companies over the past few years. Criticism has centred around some high profile pollution incidents as well as leaks, water quality and high bills.