Welsh Water says its average household bills will only rise at the rate of inflation after 2010.
Welsh Water says its average household bills will only rise at the rate of inflation after 2010.
Thames Water has already announced it expects bills to rise by about 3% above inflation a year, and Northumbrian Water said its would be 1.3% above.
Thames Water has said it expects bills to rise by about 3% a year above inflation, and Northumbrian Water said its would be 1.3% above.
The news comes as water firms in England and Wales set out planned rises to water bills for a five-year period.
Meanwhile United Utilities plans to raise prices by 2.7% above inflation.
All firms must submit their spending and pricing plans from 2010 to the industry regulator Ofwat on Monday.
All water firms must submit their spending and pricing plans for a five-year period starting from 2010 to the industry regulator Ofwat on Monday.
The watchdog will decide whether to allow above-inflation price rises at a time when customers are being hit by other rising bills.
Major investments
Customer concerns
Welsh Water said it would invest £1.5bn before inflation, or £1,000 per household on average during the period.
"This is the start of the process of making decisions on how each company proposes to provide value-for-money, long-term, high-quality water services to its customers," said Ofwat chief executive Regina Finn.
United Utilities said its capital investment for the period would be £4bn, of which £1.6bn would be for water services while £2.4bn would be for water waste services.
"We will now examine draft business plans in detail, checking the proposed level of service and investment.
We have to make sure that our infrastructure, our networks, our treatment works are all ready to cope with [an] influx of people Peter AntolikThames Water director of regulation
We have to make sure that our infrastructure, our networks, our treatment works are all ready to cope with [an] influx of people Peter AntolikThames Water director of regulation
"We will make sure each plan includes everything we expect, takes account of concerns expressed by customers, and does so as efficiently as possible."
Ofwat is due to make its final decision by November 2009.
Thames Water, the UK's biggest water company, said its £6.5bn investment plan would be the largest spending programme carried out by a UK water company.
Thames Water, the UK's biggest water company, said its £6.5bn investment plan would be the largest spending programme carried out by a UK water company.
The firm said its customers had "enjoyed the lowest bills in the industry for many years", and while there would be "an inevitable impact on bills", it would try to keep charges below the industry average.
The firm said its customers had "enjoyed the lowest bills in the industry for many years", and while there would be "an inevitable impact on bills", it would try to keep charges below the industry average.
Peter Antolik, Thames Water's director of regulation, told BBC Radio 4's Today programme that the money was vital to improve London's ageing water system.
Peter Antolik, Thames Water's director of regulation, told BBC Radio 4's Today programme that the money was vital to improve London's ageing water system.
"We also have, it should be remembered, a growing population in London and the south east," he said.
"We also have, it should be remembered, a growing population in London and the south east," he said.
"We have, we estimate, about 380,000 more people coming in to the region and we have to make sure that our infrastructure, our networks, our treatment works are all ready to cope with that influx of people."
"We have, we estimate, about 380,000 more people coming in to the region and we have to make sure that our infrastructure, our networks, our treatment works are all ready to cope with that influx of people."
Customer concerns
The watchdog will decide whether to allow above-inflation price rises at a time when customers are being hit by other rising bills.
"This is the start of the process of making decisions on how each company proposes to provide value-for-money, long-term, high-quality water services to its customers," said Ofwat chief executive Regina Finn.
"We will now examine draft business plans in detail, checking the proposed level of service and investment.
"We will make sure each plan includes everything we expect, takes account of concerns expressed by customers, and does so as efficiently as possible."
Ofwat is due to make its final decision by November 2009.
Household bills
Household bills
While most companies are likely to ask for above-inflation increases, they are unlikely to be anything like as high as recent gas and electricity price rises.
While most companies are likely to ask for above-inflation increases, they are unlikely to be anything like as high as recent gas and electricity price rises.
However, consumers do not have a choice who they get their water from.
However, consumers do not have a choice who they get their water from.
Ofwat said in February that average bills across England and Wales would rise by 5.8% this year, with increases of 8% in some areas.
Ofwat said in February that average bills across England and Wales would rise by 5.8% this year, with increases of 8% in some areas.
The regulator has said increases in bills are projected to be 42% in real terms by 2010 since the privatisation of the water industry in England and Wales in 1989.
The regulator has said increases in bills are projected to be 42% in real terms by 2010 since the privatisation of the water industry in England and Wales in 1989.
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What is your reaction to this news? Send your comments using the post form below, or text 61124.
