Water companies in English and Wales will this year impose their largest bill increases in close to two decades, though the price hikes will be well below inflation.
Bills will go up an average of 7.5% to £448 a year from April, according to Water UK.
The increase is due to rising energy costs, as water companies consume 2% of the country's electricity, with the trade body also pointing out that the increase was less than inflation.
November’s CPIH inflation figure of 9.3% was used as a benchmark when setting prices.
The price was also well below expected price hikes of around 15% from telecoms companies BT Group PLC (LSE:BT.A), Vodafone Group PLC (LSE:VOD) and TalkTalk.
The Consumer Council for Water said: “Water is essential for all of us so no one should be worried about being able to afford their bill. These increases will bring more uncertainty to struggling households at a time when they can’t be certain they will get the help they need.
“Low-income households need immediate relief and the long-term security of knowing their water bill will be affordable. It’s not fair that struggling households face a postcode lottery when it comes to getting help with their bill – that’s why we urgently need a new water affordability scheme that provides consistent support based on people’s needs.”
Water UK policy director, Stuart Colville, said that an extra £200 million has been released to help those in need.