In a letter that has gone to all of the major water companies, Owen Paterson stressed the tough times that households are facing and the crucial role that the industry can play to bring costs down.
As part of government's plan to help hardworking people, water companies have been specifically asked by Ofwat to consider if they need to apply the full price increases next year allowed for in the 2009 Price Review.
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Mr Paterson said: "We know that household budgets are under pressure, and keeping water bills affordable is a crucial way we can help hardworking people.
"That is why we are pressing hard to make sure customers get a fair deal, by encouraging water companies to look closely at any price increases, introduce social tariffs for vulnerable customers and crackdown on bad debt."
Since 2009, average increases in water and sewerage bills have been in line with inflation, and are just over a pound a day, but this has still substantially outstripped increases in household income.
(CD)
