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South West Water has to make £50 million pounds of savings over the next 5 years.
It follows an agreement with regulator Ofwat, and will see our bills go down by around £6 by 2015 - not including inflation.
The firm has told Heart job cuts will be among the ways it achieves the saving - but it hopes to remove vacant posts as they occur, rather than making redundancies.
Other plans include more off-site work and attempts to cut energy costs.
South West Water has also announced it is to invest £700 million in maintenence and customer services.