The average household water and sewerage bill in the North-East and North Yorkshire is set to increase over the next year – but will be lower than national average of 3.5 per cent.

Northumbrian Water says it will remain one of the cheapest in the country with customers paying on average less than £1 a day.

The average Northumbrian Water bill for 2013 – 2014, which comes into effect in April, will be £359.42 – an increase of 2.2 per cent in line with inflation, compared to the average bill in 2012 to 2013 of £351.61p.

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The company says it is investing an average of £175m on essential improvements every year from 2010 to 2015 – a total of £875m over the five-year period.

Northumbrian Water chief executive officer Heidi Mottram said: “Although appreciating that any increase in charges will not be welcomed our household customers will still pay an average of less that £1 per day for all their drinking water and sewerage services, which represents great value for money.

“And the average increase this year compared to last year works out at 15p a week.”

The average bill for Yorkshire Water customers will increase by 3.3 per cent.

From April 1, the average water bill is set to increase by an additional £12 a year – or £1 a month – with the average bill rising to £386.

Yorkshire Water chief executive said: “A significant part of this rise is down to inflation, and the fact that the price of many of the products and services we use as a company has risen.

“The remainder of the increase will be used to fund our ongoing investment in the region - £376 over the next 12 months.”