Ofwat has some good news about your water bill in 2020 – it’s set to be slashed

Water regulator, Ofwat has given households in England and Wales an early Christmas present. This morning it announced that households will see up to  a £110 drop in water bills over the next five years, between 2020 and 2025.

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From 2020, Ofwat has revealed plans today that force water companies to pass on savings made through lower financing costs to customers. That means your water bills should fall by an average of £50.

Water bills will typically hike up in April. In April 2019, water bills when up by £16. However, some water companies have promised to cut water bills as soon as April 2020.

The households who can expect to see the biggest reduction in water bills are customers with Northumbrian Water. They are set to see their bills reduced by £110.

Throughout England and Wales, prices are monitored by Ofwat and set by regional water and sewerage companies. However, the water regulator has pointed out that the 12 per cent decrease will not take into account the impact inflation may have on water bills.

The announcement comes as part of Ofwat's approval of a huge investment plan for water firms. The regulator also announced that water companies have agreed to cut problem leaks by 16 per cent as part of a £6 billion cost-cutting exercise.

The report also included a commitment to invest £1billion to protect communities from flooding and an agreement to crack down on river pollution. In addition to contributing towards preparations for drier weather, such as helping to fund the building of new reservoirs.

'Today we're firing the starting gun on the transformation of the water industry backed by a major investment programme to deliver new, improved services for customers and the environment and resilience for generations to come,' says Rachel Fletcher, Ofwat chief executive. 'Now water companies need to crack on, turn this into a reality and transform their performance for everyone.'

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So when you're making your financial resolutions for the new year, remember to factor in your potential water bill savings!