HOUSEHOLDS in the Portsmouth region will face an £18 increase on their water bills for next year.
Portsmouth Water, which supplies water to homes and businesses in most of Hampshire, is increasing its prices by £2 a year to make a total annual bill of £96.
It remains the cheapest water-only supplier in the country.
Southern Water, which provides waste-only services to most of Hampshire, has raised its sewerage bills by £16, increasing the price from £275 to £291 a year.
The combination means households in south east Hampshire will have to pay a combined price of £387, which is still the fifth cheapest and £1 cheaper than the national average.
The prices, set with the agreement of Ofwat, will come into force from April.
Ofwat chief executive Regina Finn said: ‘Back in 2009, companies wanted bills rises of 10 per cent above inflation.
‘That didn’t chime with what customers told us they wanted, so we said they could only increase bills in line with inflation.
‘We understand that there is huge pressure on household incomes, and any rise is unwelcome. Inflation is driving these increases.
‘We will make sure customers get value for money and if companies fall short in delivering their investment promises, we will take action,’ Ms Finn added.
‘In the past seven years, we have made companies pay out around £550 million where they have underperformed.’
The increased bills will help pay for an investment programme worth about £25 billion between 2010 and 2015, the regulator added.