Anglian Water's profits have dropped by nearly four per cent, it announced today.

Today it revealed pre-tax profits of £258 million - and that customers' annual bills have fallen by £28 in the past five years.

But the profits figure is a 3.7 per cent drop on last year's £267.8 million.

The company said the fall reflects £98.7 million in interest charges for a building programme, the Government's windfall tax and capital repayment to shareholders.

Preliminary results for 1998/99 show customers' bills are down by £28 in the five-year period 1995-2000 and 42 per cent of customers use water meters - more than any other company in the UK.

All 39 bathing waters in the Anglian Water region have reached European standards for the second year running and the leakage reduction rate of 30 million litres a day was achieved.

Roy Pointer, Anglian Water Services managing director, said the company has had a good year at home and abroad.

"At home we are seeing bills coming down to the point where we are supplying water at a lower cost than most neighbouring water companies. Service is improving and we continue to deliver strong environmental benefits."

He added the firm was going for Blue Flag water quality around its coastline and has further investment under way at Clacton and Southend.

All water companies submitted their pricing plans for 2000-2005 last month to water industry regulator Ofwat.

The director of Ofwat will announce draft price limits for all water firms over the next five years on July 27, which go out to consultation later. Price limits for the firms will be set in November.

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