Huge improvements have been made in the quality of our water

In a report published on Thursday, it says hefty price rises are in the pipeline across the UK if ambitious improvement programmes are confirmed.

But the �65 average rise projected rise in household water bills in Wales is lower than some which will be handed to customers in England.

Some water authorities there could see rises of up to a third in their bills.

Welsh Water has asked the regulator Ofwat if they can increase their prices by �65 between now and 2009.

Severn Trent and Dee Valley Water have also asked for rises.

"Our idea now is that we should consolidate that performance ....and there should be no slippage back from the standards already achieved Nigel Annett

Nigel Annett, director of Welsh Water, said the increase were needed to fund environmental improvements required under European directives.

He told BBC Wales that "massive improvements" had been made in waste water quality over the last 10 to 15 years.

Wales now has over 30 Blue Flags - measurements of water quality around the coast - whereas in 1995 it had just two.

"Our idea now is that we should consolidate that performance ....and there should be no slippage back from the standards already achieved,"

.Mr Annett said Glas Cymru , the not-for-profit company which owns Welsh Water, was currently giving customers rebates on their bills.

Earlier this year Welsh Water revealed it was planning a �1bn programme of investment over the next five years from 2004.

Privatisation

The details of improvement plans it wants will be debated between now and next summer, said Mr Annett.

However, the consumer group WaterVoice says the government should pick up some of the bill so the financial burden of the improvements does not rest solely with water customers.

"Over the last 15 years since privatisation the water industry has invested �50bn of customers' money," said WaterVoice's Derek Hall.

"What we're saying now is we really need to take stock.

"At the moment we don't believe that we should continue to spend money by improving the environment even further.