Water bills look set to rise in the North East and North West

The changes involve a �26 increase in the average annual bill for Northumbrian Water users and a rise of �9 for customers of north-west England-based United Utilities.

Ofwat said an increase in the costs faced by the two companies was substantial enough to justify an increase in water and sewerage charges.

It stressed the rises, which cover the year from 1 April, still left bills for both companies at the same level, or below, those of 1999.

Higher debt-collection costs and loss of revenues because of increasing customer debt were among reasons cited by Northumbrian Water for the rise.

The company, which serves four million customers in Northumberland, Essex and Suffolk, also needs more money for monitoring water quality.

Industry regulator Ofwat has given the two firms had given preliminary approval to increase their water and sewerage charges.

AREAS FACING CHARGE INCREASES Northumberland Water - from Berwick upon Tweed, Northumberland to North Yorkshire Essex and Suffolk Water - a Northumbria Water sister company, supplies Essex and Suffolk United Utilities - north west England, including Cheshire, Manchester, Liverpool and the Lake District

But the decision will have to undergo a public consultation, which allows consumer groups to have the chance to protest before final approval is given to the increase.

Previously, the regulator has taken a tough line with water companies, imposing a strict price cap.

Rising costs

In August , United Utilities said it would be seeking to increase its charges to cover the extra �2.2bn cost of meeting new drinking water and environmental standards.

It also announced plans to spend about �200m on tackling sewage flooding and odour problems.

It followed a warning from Water UK, which represents the water firms, that water bills needed to rise by �75 over the next seven years, from �240 in 2004 to �315 in 2010.