Anglian Water has announced a cut in prices, with customers seeing their annual bill drop by £29 on average.

The firm, which serves parts of Norfolk and Suffolk, said that the 7% saving was achieved through efficiencies being returned to customers.

It is the biggest percentage saving for customers, outstripping all other water and sewerage companies in the UK.

The average annual bill will reduce to £402 per year, or £1.10 per day.

Customers with a water meter will pay even less, with the average bill dropping to £371.

Martyn Oakley, Anglian Water's director of customer service, said: 'We know household budgets remain under pressure.

'So we believe this price cut is timely and coming at a time when customers tell us they need it most.'

Meanwhile the company is investing across the region with flood alleviation schemes in King's Lynn, Norwich, Thetford and Wroxham.

More than £26m will be spent on connecting rural communities to the main sewerage network, including places like Hillington, Burston, Swafield and Bradfield, Little Ellingham and Mattishall over the next five years

Other investments include £2.5m on improvements at the water recycling centre in Whitlingham and more than £10mon improvements at other water recycling centres, nearly £2m on water mains improvements in Framlingham Earl and Bixley and £3.5m to protect the natural environment near Stoke Ferry, Marham, Heigham and Trowse.

This reduction in bills is part of Anglian Water's five year business plan to 2020 which is supported by more than 90% of customers following the company's biggest ever public consultation.

'As well as cutting bills we're also continuing to help customers control how much they spend on bills,' added Mr Oakley. 'For instance, we've pledged by 2020 to fit 95% cent of homes with a water meter.

'And this doesn't mean making metered bills compulsory because we believe the savings to be achieved speak for themselves.'

More information, including details of support available for those who struggle to pay their bill, is available on the Anglian Water website at www.anglianwater.co.uk/charges

By contrast, Essex & Suffolk Water's average bill for water services will increase by about 4p a week.

The company, which also serves parts of the region, said this announcement came as its multimillion-pound investment programme continues over the next five years.

Customers will, on average, pay about 63p per day for their drinking water services.

The firm said it would invest an average of £50m on essential improvements each year from 2015 to 2020 – a total of £250m over the five year period.

Heidi Mottram, Essex & Suffolk Water's chief executive, said: 'Although appreciating that any increase in charges will not be welcomed our household customers will still pay an average of 63p per day for their drinking water services which represents great value for money.

'We are also continuing to ensure that we run our business as efficiently and sustainably as possible to the benefit of all our customers and stakeholders.

'This on-going investment programme not only delivers improvements for our customers, but is also helping to provide much needed work for local companies and secures jobs in the regions we supply.'

Customers who are facing difficulty in paying their bills can find more information at www.eswater.co.uk/your-home/your-account/Difficulty-paying.aspx and by visiting www.stepchange.org