In July, Ofwat had suggested raising bills by an average of 21%, but the water industry insisted this was not enough to tackle the range of problems water companies face.
Firms said they needed extra money to replace ageing, leaking pipes and to reduce sewage discharges into rivers and seas.
Water UK, which represents water firms, said the 36% increase would provide “much-needed” investment for the sector.
However, companies are also facing increasing scrutiny and public anger over their environmental and financial performance, as well as executive bonuses and pay.
