Severn Trent said on Tuesday that trading was in line with expectations but that falling water consumption would hit revenues this year.

The UK water and sewerage company’s water bills went up by 5.07 per cent for the year starting April 1. Severn Trent said it had noted a decline in water consumption among customers with water meters, and “we expect this to continue and estimate it will impact revenues by around £12m to £14m in the current financial year”.