Households across Shropshire will have the lowest water bills in the country with a £13 drop in the average bill to £291 by 2015, following a decision by Ofwat.

The industry watchdog’s final decision on prices shows the average Severn Trent bill will drop by four per cent over the next five years.

Nationally, bills will fall by an average of £3 before inflation to £340 between 2010 and 2015.

Severn Trent’s customers using a water meter will see bills drop by five per cent, and unmetered homes by three per cent.

Ofwat’s decision to keep bills broadly flat comes as the regulator unveiled a record £22 billion programme of investment in the network – about £935 for every property in England and Wales.

Severn Trent will be investing about £681 for every property in the region it covers, the lowest capital expenditure per household in the country.

The regulator’s chief executive Regina Finn said: “Customers have told us that they want us to keep water and sewage charges flat while maintaining a safe, reliable supply of water. That’s what we’ve delivered.

“There’s more to this than just low bills, it’s about what customers get for their money. We’ve scrutinised every pound in the companies’ pl-ans to make sure they deliver what customers want.

“We will now make sure the companies deliver on their promises. If they don’t we’ll take action to protect customers.”

Earlier this week Severn Trent, which serves millions of households across the Midlands and the Welsh borders, announced pre-tax profits up 22 per cent to £188 million for the first half of the year. The company said cutting costs and keeping a tight rein on customers owing cash had helped.