Severn Trent water customers will face price rises below the rate of inflation from 2016 to 2020 – with a complete price freeze in 2015.
The company supplies thousands of homes in Sheffield’s southern suburbs and across north Derbyshire.
Its plans follow moves by Yorkshire Water to increase its bills in line with inflation until 2020, a lower increase than the company originally planned.
Severn Trent has submitted a new business plan to water regulator Ofwat.
It also includes more than £3.2 billion of new investment in the region’s water and sewerage infrastructure, an increase of over £600 million on the previous five years.
Chief executive Tony Wray said: “Our challenge has been to put together a plan which delivers the services customers want and what the environment needs, while keeping bills affordable.
“We have a track record of real price reductions over the last five years and for sharing the benefits of efficiency improvements with customers.
“We plan to maintain this over the next five years and deliver better value, better services and a healthier environment. This is driven by and for our customers.”
Severn Trent’s environmental pledges include spending £329 million on improving river quality, and reducing the number of homes flooded by sewers.
The strategy was drawn up after consultations with 15,000 customers and 160 representative bodies, including the independent Severn Trent Water Forum, chaired by Dame Yve Buckland.