Water bills are set to rise by an average of £31 per year over five years from April, the industry regulator has said.
Ofwat said the increase was enough for water companies in England and Wales to pay for upgrades and reduce sewage discharges.
The increase is higher than the £19 per year Ofwat previously proposed, but is lower than what water companies had requested.
It comes amid public anger over sewage discharges into waterways and a continuing squeeze on household finances.
The regulator said the bill increases would pay for £104bn upgrade for the sector.
David Black, Ofwat chief executive, said the regulator was “acutely aware of the impact that bill increases will have for some customers”, adding that water firms now needed to “rise to the challenge” of making a “significant improvement over time to justify the increase in bills”.
