Water companies must 'attract investment' says Water UK

Water UK has urged shareholders to consider investing in the water industry.

It comes after firms were urged by Environment Secretary Owen Paterson to "look closely" at water bill prices rises, and introduce special tariffs for struggling households.

Neil Dhot from Water UK - which represents the water companies - told BBC Radio 5 live's Wake Up to Money: "They have to make sure we can attract enough investment to replenish the assets we have.... and at the same time keep customer bills as low as possible."

The Department for the Environment, Food and Rural Affairs said that average increases in water and sewerage bills had been in line with inflation since the 2009 price review but had substantially outstripped increases in household income.