HOUSEHOLDERS in East Lancashire will see their water bills tumble.

But bills will rise again in four years' time to help pay for a massive investment in environmental improvements.

The average bill for domestic customers will fall by £17 in the year from this April - a drop of eight per cent. It is the first time since privatisation that bills have fallen. The reduction was announced last year but comes into effect for bills for the 2000 to 2001 financial year. It is part of a five-year pricing plan set by water watchdog OFWAT.

Despite the sharp fall this year, bills will to rise again towards the end of the five year plan.

Next year they are to fall by one per cent, remain the same the year after and then rise by four per cent and four-and-half per cent in the following two years.

Although the fall over the next 12 months is substantial it is lower than in other parts of the country because the North West needs to spend more on environmental improvements.

Of every £4 to be spent in England and Wales over the past five years, £1 will be spent in the North West.

Although OFWAT's North West customer service committee welcomed the reduction from April it said it was disappointed bills would have to rise later.

"We feel that the investment programme could have been spread over a longer period which would have reduced the impact on customers," said Andrew White, acting regional manager of the committee.

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