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The average water and sewerage bill for Wessex Water customers will increase by 6% from April 2012.
The bill rise, which is around the national average for water company price increases, will mean that customers continue to receive water and sewerage services for less than £1.25 a day or the price of a loaf of bread.
Ofwat agreed the price rise to enable the company to maintain and further improve the services we provide and to meet environmental legislation.
By 2015 they'll have invested £1 billion as part of a five year investment programme.
Andy Pymer, head of regulation and policy, said: "Our investment programme creates more than a thousand direct jobs - largely for local contractors - and many further jobs through the supply chain.
"Over the past two decades we have invested more than £3.4bn in the local economy, making us the largest infrastructure investor in the region."
From last October, the government made water and sewerage companies responsible for private sewers. This doubled the length of sewers they are now responsible for in the region to more than 30,000km.
The change in sewer ownership aimed to reduce the burden on householders who previously had to pay for blockages or repairs. But, some of the sewers we have taken on are sub-standard and in poor condition.
"We understand that any price increase is unwelcome at this time," added Mr Pymer. "We have a number of schemes to help customers who have difficulty in paying their bills and we are continuing our work with Citizens Advice and other debt advice agencies to provide support for vulnerable customers.
"Many of our customers save money by having a water meter. We will continue to promote the free meter option and offer water and energy saving advice to help customers reduce their bill."