Households in Gedling borough will see an average £50 drop in water bills over the next five years between 2020 and 2025.
Water regulator Ofwat has revealed today it has secured the price drop by forcing water companies to pass on savings made through lower financing costs.
But Ofwat points out that this £50 decrease doesn’t take into account the impact inflation may have on bills.
Water bills typically rise each year in April, although some water companies have already promised to cut water bills from April 2020.
Local supplier Severn Trent Water has already committed to dropping water bills by 5%, which means around £16 in savings for consumers.
In addition to cutting bills, Ofwat says water firms have agreed to cut problems leaks by 16 per cent and invest £1billion to protect communities from flooding.
Companies have also pledged to do more to help an additional 2million customers who need extra support.
They’ve also agreed to reduce river pollution, and shell out around £450million to prepare for drier weather, such as building reservoirs.
Ofwat chief executive, Rachel Fletcher, said: “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.
“Now water companies need to crack on, turn this into a reality and transform their performance for everyone.”