Householders in Shropshire and Mid Wales could see their water bills fall by about eight per cent during the next six years under the regulator’s proposals.

Ofwat today published draft proposals for the prices Severn Trent Water can charge between 2010 to 2015.

Every five years Ofwat sets limits on the prices water and sewerage companies can charge and its proposals follow the submission of Severn Trent’s final business plans in April.

By 2015, the company’s average water and sewerage bill is set to fall by about £24, or eight per cent, to £2,811.

Severn Trent will still be able to invest with about £2.2 billion pumped into helping maintain and improve services to consumers. This is part of a programme of almost £21 billion investment across the sector in England and Wales.

Today Ofwat chief executive Regina Finn,  said: “Our decisions will keep bills down, while allowing Severn Trent to invest about £2.2 billion. Customers will see real benefits as a result.

“It’s vital that we learn lessons from the past and keep taps running during severe events such as flooding. Severn Trent is investing in protecting its water treatment works and also linking up networks to make sure customers aren’t reliant on one source.

“More than one-and-a-half million people will benefit from more secure water supplies as a result of this investment.”

The benefits will include  about £10 million spent on surveying nearly one million households to identify and solve low pressure caused by shared supply pipes.

Severn Trent chief executive Tony Wray said the company would review the “complex” draft document before responding.