The first increases could be introduced by April 2004

Northumbrian Water has asked the industry regulator Ofwat to allow it to increase charges in its draft business plan.

If allowed, it will mean average bills will go from �206 a year to �286 year in 2010.

Water UK, which represents water companies, had previously warned that average water rates needed to rise by about �75 a year to fund much-needed improvements to supply and sewage systems.

Northumbrian Water's managing director John Cuthbert said current price levels were "simply unsustainable."

Mr Cuthbert said: "Consumers have had substantial reductions over recent years.

"This has meant we have not been able to carry out work which was necessary to improve supplies and sewage.

"This will now give us the opportunity to carry out these works and improve the service we give to customers."

If Ofwat approves the increases, consumers will see an initial rise in bills by April 2004.

The company says the increase will compensate for a 21% reduction in bills that the regulator enforced on water companies four years ago.