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Water duo to cut real prices

Two major water firms are to lower their prices in real terms over the next five years.

South West Water and Affinity Water will charge less for water and sewage services before taking into account inflation.

They were today given draft determinations by regulator Ofwat for the five-year period starting in 2015.

Both companies proposed lower customer bills in real terms over the period while maintaining investment in customer services and the environment.

South West customer bills will fall an average of 7% before inflation; Affinity user bills will fall an average of 11% before inflation.

Ofwat chief regulation officer Sonia Brown said: “We wanted to see companies really stretch themselves, and South West and Affinity rose to that challenge with innovative and affordable business plans.”

Consultation on the draft determinations will close on 4 June. Other water companies will receive their draft determinations over the summer.

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