OFWAT, the water regulator, has announced bills for Southern Water customers will rise by five per cent over the next five years.

The average water bill for Hampshire households will increase by £20 to be £393 by 2015, before inflation.

Daily Echo: Click below to see a video of today's headlines in sixty seconds

This is about £27 lower than what the company asked for, but was one of the highest increases in England and Wales. Across the country water bills will drop by an average £3 to be £340 by 2015.

Ofwat CEO Regina Finn said our region was one of the driest parts of the country and investment was needed to ensure reliable water supplies.

“We have listened to Southern’s customers. They have told us that their priority is safe, reliable water supplies at a reasonable cost,” Ms Finn said.

“We’ve challenged the company and kept bills £27 lower than they asked for. This is not just about keeping bill increases down, but about what customers get for their money.”