Ofwat probe on water price plans

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Water firms in England and Wales are to have their pricing policies examined by Ofwat after revealing how much they aim to hike bills for five years from 2010.

The watchdog Ofwat has revealed that bills would increase by 9% more than inflation between 2010-2015.

The average bill will be £355, before inflation is considered, by 2015, as firms look to boost investment.

"My job is to ensure customers get a fair deal from the water industry," said Ofwat boss Regina Finn.

"We need to balance investment in the future with what customers are able to pay now," she added.

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

Water firms proposed these increases to help pay for an investment programme of £27bn in the industry over the five-year period.

Ofwat said the capital investment programme was roughly 37% more than the current 2005-10 period, in which companies' investments totalled slightly under £20bn.