Britain's water companies have been ordered to cut 4% from their bills by 2015 by industry regulator Ofwat.

The regulator rejected calls from the water companies to raise prices and stated that prices must fall by £14 per year before inflation.

This is good news for small business that have seen their utilities bills rise rapidly in recent years.

"We understand times are hard and we have listened to what customers have told us. They want a safe, reliable water supply at a reasonable cost," said Regina Finn, Ofwat's chief executive.