Water bills set to rise by 40% due to water shortages

The average bill increase per household will be £86.

The rise in price has come about as a means of tackling the "twin crisis" of water pollution and shortage.

Ofwat, the Water Services Regulation Authority, confirmed this morning that it gave water suppliers permission to increase bills over the next five years.

The average rise will come into effect from April and be around 40%, which is equivalent to an average extra of £31 per year - or an average of £157 over five years.

The bill hike averages have been calculated without inflation, meaning actual bills are likely to be higher.

The increase is bigger than the 21% rise that Ofwat first proposed in July.

The biggest increase will be seen by customers of Southern Water, who are set for a 53% hike to their bills over the next five years.

Currently, Southern Water customers have an average bill of £420 - but in five years time this will have risen to £642.

Paying the most every year in five years' time will be Dwr Cymru customers with an average annual bill of £645.

The water industry has faced fierce criticism in recent years over pipe leaks and sewage discharges into rivers. Many firms, including the UK's largest supplier, Thames Water, are struggling financially.

They will be hiking bills by 35% from an average of £436 a year to £588 for 16 million of its customers.

The bill rises do not apply to households in Scotland and Northern Ireland, where the water industry is nationalised.