Northumbrian Water says customers will benefit from about £900 million pounds of investment between 2015 and 2020 – if its plans are approved.
The company, which supplies drinking water and waste water treatment to 2.7 million customers in the north east, is committed to keep improving its services, and for bills that will increase at the rate of inflation.
Its business plan has been submitted to the water regulator, Ofwat, after more than two years of planning, research and consultation.
The plan, which it says is based on customer priorities, includes further improvements to the water environment and, in particular, contains substantial proposals to help protect homes from the risk of flooding from sewers.
Under the plan, the average household water and sewerage bill will be adjusted by no more than inflation between 2015-16 to 2019-20.
Heidi Mottram, Northumbrian Water’s chief executive, said: “While we appreciate that any increases in the household budget are unwelcome we believe that our plan, which avoids any change in bills apart from an adjustment in line with inflation, will deliver the improved services that our customers are quite rightly looking for.
“Customers have told us clearly that they do not wish to see service reduced in any respect - even in return for lower bills - and we will not let service deteriorate in any area. Given the economic situation, we have worked very hard to minimise the costs of delivering our plan and keep bills as low as possible.”