Bristol Water is to ask water regulator Ofwat for permission to raise customers' bills by about �15 per customer over the next two years. The company said costs were increasing in three areas, including the number of customers opting for a free meter and the level of bad debts.
It added that it was investing �150m in capital projects to meet Ofwat's output targets set during the pricing process.
Ofwat set the price limits for water companies for 2005 to 2010 in 2004.
The original price limits would have meant a �2 per household reduction each year by 2009/10.
A draft determination is scheduled for November.
Bristol Water supplies water to more than one million people.
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