All customers in Wales are likely to see water bill increases

Welsh Water, which supplies 1.2m households in Wales, may increase its annual bill from an average of �286 to �337 by 2010 - a rise of 18%.

Customers of Wales' other two water suppliers, Dee Valley and Severn Trent, will see bills rise by 9% and 16% respectively.

The average increase across Wales and England as a whole is 13%.

Water firms proposed bigger increases to fund infrastructure projects, but rises were limited by the water regulator Ofwat.

Consumers' group WaterVoice Wales called the proposed increases "unacceptable and unaffordable to many customers".

Such a big increase is clearly not affordable for households on low and fixed incomes John Ford, WaterVoice Wales

There will be a period of consultation before the proposed price rises are made official in December.

If the draft proposals are adopted, all Welsh consumers will see increases year-on-year to 2010.

For Welsh Water customers, an initial price rise of �34 is planned for next year, rising to �51 by 2010.

The company had proposed a �76 increase, but was limited to the smaller rise by Ofwat, which oversees all water companies' performance and sets levels of pricing.

Investment programme

In a statement, Welsh Water said the planned rises would help pay for a �1.1bn investment programme to improve drinking water and environmental quality and to deal with problems of sewer flooding.

The company said it was working to keep price increases as low as possible.

Severn Trent Water, which supplies many households and businesses in mid Wales, will impose a �36, or 16%, rise on average bills which will increase from �221 to �257 by 2010.

The company's bill will initially rise by an average of �22 next year.

Dee Valley Water, which is a water-only supplier in north east Wales, will charge �3 less in 2010 than at present.

But the company's sewerage services are provided by Welsh Water, meaning the average customer will see their total bill go up from �270 to �294 by 2010 - a below-average 9% rise.

'Puzzled and unhappy'

Across all the water companies of England and Wales as a whole, bills could increase by an average of �33 to �282 a year by 2010.

The companies said increases were needed to improve water and sewage networks and for projects such as protecting homes against flooding.

Consumers' group WaterVoice Wales said in a statement that customers would not be happy with above-inflation increases.

WaterVoice Wales chairman John Ford, said: "Customers are likely to be puzzled and unhappy.

"It's better than it might have been - over 20% was proposed at one stage - but it's still a long way above inflation.

"Such a big increase is clearly not affordable for households on low and fixed incomes."