Water bills are set to rise by an average of £31 per year over five years from April, the industry regulator has said.
The increase is higher than the £19 per year Ofwat proposed in July, but is lower than water companies had requested.
Ofwat said the increase was enough for water companies in England and Wales to pay for upgrades and reduce sewage discharges.
However, the £31 rise is before inflation has been added so actual bills are likely to be higher.
The water industry has faced fierce criticism in recent years over leaks and sewage discharges into rivers.
But Ofwat said higher bills would pay for £104bn upgrade for the sector.
David Black, Ofwat chief executive, told the BBC the investment will “deliver significant reduction in sewage spills, further reductions in leakage, and drive up service for customers”.
The bill hike varies by region. Southern Water customers will be hit by the biggest increase, with bills going up 53% – £642 on average – by 2030.
Southern Water supplies to thousands of homes are currently disrupted, with more than 58,000 properties impacted.
Wessex and Northumbrian Water bills will rise by the smallest amount – 21%.
Thames Water, which is struggling under a huge debt pile, will be able to charge customers 35% more, with bills going up to £588.
Rebecca Sinker, member of the Clean Water Action Group in Hastings, said the group had been getting bacteria readings “way of the scale in terms of safety” in the sea.
She said the area, which is covered by Southern Water, relied on the sea for its fishing and tourist industry.
“They haven’t been keeping up with the infrastructure maintenance and that’s why we’re angry about the cost of bill rises,” she said.
“We don’t trust them to spend our money in the right way, and we can’t go anywhere else for our water. It’s a private company monopoly”.
