South West Water says it wants to replace ageing pipes

The average household bill in the South West is �334 a year, the highest in England.

But under these plans that would rise to �407 by 2009.

The company says the increase in bills will pay for improvements in the supply network and to replace ageing pipes and sewers.

Bob Baty, chief executive of South West Water, said many of the changes had been forced on the water company by government and the EU.

He said: "We are as keen as customers are to keep the charges as low as possible, while complying with the legislation that we are expected to comply with."

Cost 'horrendous'

Dr Noel Olson, chairman of WaterVoice South West, the consumer watchdog for South West Water, said: "We were very relieved because we were fearful that the rise would be much bigger.

"We are delighted that South West Water are taking the line that they should only do what is environmentally and legally mandatory."

He added: "The cost of water in the South West is horrendous.

"The problem is that 3% of the population have to pay for 30% of the coastline.

"It is an enormous amount of money, especially for pensioners."

The proposals will be considered by the industry regulator Ofwat, who will deliver its verdict in November next year.