The annual bill for London’s water infrastructure is set to surpass £30 billion when it is replaced by an independent body.
The Water Bill Authority is to be set up by a Government-led consortium of private developers and will take over from the Metropolitan Waterways Authority in 2020.
The scheme, which is due to cost around £30.4bn, is the first of its kind in the UK.
The Government is also set to set up a £10bn Water Delivery Fund for England, which will help tackle water shortages and water pollution in areas of need.
Its first instalment will be £3bn and it will be paid out over three years.
The authority is due for its annual report in May.
The Water Delivery Bill Authority will take charge of running the water system and the distribution system from 2019 to 2028, with the new authority being funded through the Water Bill Levy and water charges.
The project has been described by David Anderson, the authority’s deputy director, as “the most ambitious and ambitious water supply project in the country”.
“It will have a huge impact on the lives of Londoners,” he said.
Mr Anderson said the authority would provide a “much better service” to the capital, including a new water meter, which should be installed within weeks.
“We will be able to deliver water for our residents and businesses in a way that has never been done before,” he added.
“We are going to deliver a much better service for Londoners and it is going to make life better for everyone.”
Water bills are a significant part of London’s economy and have been a hot button issue in the city’s politics.
The Metropolitan Waterway Authority’s water bills are expected to top £2.7bn for the next financial year.
This figure is expected to rise to £2bn by 2021-22.
In March, Mayor Sadiq Khan announced that he would abolish the water meter on the Thames Waterfront, where water has been a common cause of disputes.
The water meter will be replaced with a smart water system.
London’s water is pumped into underground cisterns and then sent through pipes to other water supply networks, including the Thames, the North East Waterway, the Thames Valley, the South West Waterway and the South East Waterways.