Water companies in England and Wales propose increasing the average customer bill by around nine per cent more than inflation, between2010-2015, according to a Summary Document">Summary Document issued byOfwat.

Water companies' proposals for investment between 2010 -15 were submitted to Ofwat in August">submitted to Ofwat in August. Companies' proposals mean the average bill will reach £355, before inflation isconsidered, by 2015/

The companies have proposed the increases to help fund acapital investment of £27 billion in the industry over the five year period,and address the issue of increased operational cost, including rising energy prices. The capital investment programme represents approximately a 37 per cent increase on the current 2005-10 period, where companies' investment totalled just under £20 billion. The Summary Document highlights the distinct differences between regions. No water company has kept its proposed increases below inflation; a number have kept their proposed increases very close to inflation, and many have proposed significant increases.

Regina Finn, Ofwat Chief Executive Officer said,

"My job is to ensure customers get a fair deal from the water industry. Weneed to balance investment in the future with what customers are able to pay now. 

"We will analyse the water companies' proposals rigorously and challengethem to justify all investment. We will protect customers from any unnecessary price rises."

Ofwat is now in the process of analysing and challenging the companies' proposals. Following feedback, companies will submit their final business plans in April 2009. Ofwat will publish final price limits for 2010 –15 in November 2009.