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Government is set to extend a £40 million annual rebate for South West Water to pass on to customers.
In his statement on the comprehensive spending review next week, chancellor George Osborne is expected to announce that the funds will be released for a third year in 2015.
The subsidy, worth £50 per household, was enabled by legislation last year to address historically high costs in the region.
Even with the support, South West Water bills are the highest in the country, as a relatively small population pays for strict sewage treatment standards to protect a long stretch of coastline.
Camborne and Redruth MP George Eustice told ITV the move was “very very good news for homeowners in Devon and Cornwall”.
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