WATER bills are about to go up by more than £20 for Hampshire residents.

This year has seen a 0.2 per cent increase in the rate for water and sewerage services from Southern Water equating to just £1.

However, the utility giant will be pushing prices up by five per cent above inflation over the next five years which means bills will shoot up by £20.

Initially the firm wanted a 12 per cent hike hitting the average wallet for an extra £47 a year but regulator Ofwat capped the increase.

Next year the average customer will now be shelling out £373, spending £131 on water and £242 on sewerage.

Southern Water boss Colin Harley said: “We are focused on ensuring value for money, and, particularly at the present time, keeping bills to a minimum while continuing to deliver improvements for our customers.”

The company will be investing £1.8 billion over the next five years ensuring an extra 35 million litres a day are available during peak times, installing half a million water meters, safeguarding supplies and reducing leakage. It also claims it will be improving water quality, protecting the environment, cutting pollution incidents and helping to prevent flooding.

Ofwat chief Regina Finn, said: “We have listened to Southern’s customers.

“They have told us that their priority is safe, reliable water supplies at a reasonable cost. We’ve challenged the company to deliver this.

“This is not just about keeping bill increases down, but about what customers get for their money. We now need to make sure companies deliver on their promises. If they don’t, we will take action.”

The changes will come into effect on April 1 2010 and apply until March 31 2011.