Residents in the South East are to get a one-off water bill rebate following the merger of two suppliers.
The average South East Water bill for 2008/9 will be £161
South East Water said its 2.1 million customers in Kent, Sussex, Surrey, Hampshire and Berkshire would each get 2% off their next bill, due in April.
The £4m rebate was agreed with the Competition Commission following the merger of South East Water and Mid Kent water last December.
The new firm said during 2008/2009 it would also invest £80m in services.
South East Water has pledged to spend £9m on refurbishing water treatment works and £3.5m on the installation of water meters.
Paul Butler, managing director at South East Water, said: "The merger is allowing us to deliver a number of addition benefits.
"Crucially, it has also given our customers a clear financial benefit with a rebate in this year's bills. That means our average domestic bill equates to less than 50p a day."