Water bills could rise from 2005

If the proposed price rises are given the green light by the industry regulator, average bills will rise by �14 each year from 2005 to 2010.

This will mean that the average annual bill will rise from �240 a year in 2005 to �310 a year in 2010.

Water UK, the body representing UK water companies, says price rises are needed to fund infrastructure projects.

Debt concern

The industry also has to find cash to meet government targets on improving the quality of drinking water.

In total, Water UK said the industry planned to spend �22bn between 2005 and 2010 on capital projects, a �5bn increase on the amount spent in the preceding five years.

However, consumer groups reacted with anger to the industry's request to be allowed to raise prices.

"Price rises on this scale will risk worsening the industry's mounting debt problems and drive thousands of customers into debt for the first time," said Maurice Terry, chairman of consumer body Watervoice.