Water bills are set to go up by 1.5 per cent in South Yorkshire.
Yorkshire Water said it meant the average yearly household water bill would go up from £368 to £373 from Tuesday, April 1.
The firm said the rise was lower than previously planned and in line with inflation.
A 1.6 per cent rise in addition to inflation was originally scheduled with agreement from industry regulator Ofwat.
Richard Flint, the company’s chief executive, said: “Customers in South Yorkshire already pay some of the lowest average bills in the country, but we’ve heard the message that we need to continue to deliver a great service while keeping bills as low as possible.
“We know many customers are feeling the pinch and have taken action by limiting the price rise.
“We’ve also gone a step further in our proposals for the next five years by suggesting bills move only with inflation up to 2020.
“Industry regulator Ofwat will give us their views on that proposal later in the year.”
The Consumer Council for Water – the industry watchdog – welcomed the news Yorkshire Water was keeping the rise in line with inflation.