Higher bills to fund £20bn water investment

Water watchdog Ofwat agreed to an increase in household bills today to fund a £20bn infrastructure investment programme.

The cash is being invested during 2005-10 in maintaining and improving water and sewerage services across the country. Work involves replacing or renewing 20,000 km of water mains.

Ofwat has sanctioned a 1.1% above inflation rise for domestic bills this year to help pay for the programme.

Chief executive officer Regina Finn said: "We have made significant steps forward over the last 20 years. Yet the challenges of the future are different to those of the past.

"We are due to finalise prices for the 2010-15 period at the end of this year and we will make sure that consumers get a fair deal."