Water firms in England and Wales are presenting draft spending and pricing plans for the five-year period starting from 2010 to regulator Ofwat.
Water firms in England and Wales are presenting draft spending and pricing plans for the five-year period starting from 2010 to regulator Ofwat.
Thames Water expects bills to climb by about 3% a year above inflation during the period, while Northumbrian Water said its rise would be 1.3% above.
Thames Water expects bills to climb by about 3% a year above inflation during the period, while Northumbrian Water said its rise would be 1.3% above.
United Utilities plans to raise prices by 2.7% above inflation.
United Utilities plans to raise prices by 2.7% above inflation while Anglian Water sees a 0.7% rise above inflation.
And Severn Trent said prices would rise "only slightly above inflation," but did not give a figure.
Severn Trent said prices would rise "only slightly above inflation".
However the firm did not give an exact figure.
Major investments
Major investments
Welsh Water said household bills would rise only at the rate of inflation, as it announced plans to invest £1.5bn, or £1,000 per household, on average during the period.
Welsh Water said household bills would rise only at the rate of inflation, as it announced plans to invest £1.5bn, or £1,000 per household, on average during the period.
WATER PRICE RISES 2010-2015 Thames Water - 3% above inflationUnited Utilities - 2.7% above inflationNorthumbrian Water - 1.3% above inflationSevern Trent - "slightly above inflation"Welsh Water - at inflation only The money will be used to protect the quality of the water, support new infrastructure, improve water treatments and reduce the risk of repeat sewer flooding to properties.
WATER PRICE RISES 2010-2015 Thames Water - 3% above inflationUnited Utilities - 2.7% above inflationNorthumbrian Water - 1.3% above inflationSevern Trent - "slightly above inflation"Anglian Water - 0.7% above inflation Welsh Water - at inflation only The money will be used to protect the quality of the water, support new infrastructure, improve water treatments and reduce the risk of repeat sewer flooding to properties.
The firm's average household bill will be £390 before inflation.
The firm's average household bill will be £390 before inflation.
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.
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.
While the firm said it would increase prices by 2.7%, bills were tipped to rise by 2.1% on average thanks to greater use of water meters.
While the firm said it would increase prices by 2.7%, bills were tipped to rise by 2.1% on average thanks to greater use of water meters.
However it added that it would reassess its costs when it submits its final plan to Ofwat in 2009 "in light of financial market conditions at that time".
However it added that it would reassess its costs when it submits its final plan to Ofwat in 2009 "in light of financial market conditions at that time".
Severn Trent said it would invest £3.2bn to deliver improved services, reinforce the network following last summer's flooding and reduce sewer flooding. It also said the money would be used for environmental improvements.
Severn Trent said it would invest £3.2bn to deliver improved services, reinforce the network following last summer's flooding and reduce sewer flooding. It also said the money would be used for environmental improvements.
Tony Ballance, the firm's director of regulation and competition, said: "We believe our draft plan provides the best balance between improved services, the needs of the water environment and a cost that customers are willing to pay".
Tony Ballance, the firm's director of regulation and competition, said: "We believe our draft plan provides the best balance between improved services, the needs of the water environment and a cost that customers are willing to pay".
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
Anglian Water said it would increase the average household bill from £360 in 2010 to £373 in 2015, an annual rise of 0.7%. 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
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.
All water firms are submitting draft plans to Ofwat
All water firms are submitting draft plans to Ofwat
"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
Customer concerns
Tony Smith, chief executive of the Consumer Council for Water said the customers were giving the message that they want the service to be maintained.
Tony Smith, chief executive of the Consumer Council for Water said the customers were giving the message that they want the service to be maintained.
"They want a safe, reliable water supply, they want an effective sewerage system but above all, they want prices not to go above inflation."
"They want a safe, reliable water supply, they want an effective sewerage system but above all, they want prices not to go above inflation."
The watchdog will decide whether to allow above-inflation price rises at a time when customers are being hit by other rising bills.
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.
"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 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."
"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.
Ofwat is due to make its final decision by November 2009.
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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