Anglian Water says the industry needs to "sustain itself"

Anglian Water - which supplies water in Norfolk, Suffolk, Essex, Cambridgeshire, Northamptonshire and Bedfordshire - wants to see a 36.8% rise in bills between 2005 and 2010.

The company, which is owned by AWG, said the rise was necessary for the company to meet its environmental commitments, including dealing with flooding issues.

The proposed rise has been put to water watchdog Ofwat as part of a consultation process which will continue until November 2004.

If the rises are approved average bills would rise by �102 - from �277 to �379 - by 2010.

Of this, �145 would be for water and �234 for sewage services.

Andrew Mackintosh, from Anglian Water, said: "Ofwat needs to have a water industry that can sustain itself."

Sara Rowland, communications manger for Anglian Water, added: "At the end of the day we are looking at some huge costs for maintenance and flooding issues."