Cambridge Water's new product comes from the same aquifer as its tap supply

For years, utility companies have told us that we are wasting our money buying mineral water.

But now a firm which makes millions from selling tap water has started marketing bottled mineral water – from the same underground source.

The parent company of Cambridge Water has invested £10million in a bottling plant above a chalk aquifer.

The new company, Iceni Waters, has already struck deals with stores including Tesco, Morrisons and the Co-op. It aims to lift capacity from an initial 15million to 60million litres a year.

Iceni, named after the East Anglian tribe ruled by the warrior queen Boudicca (Boadicea) in 60AD, is owned by Cheung Kong Infrastructure Holdings, part of a group, controlled by Li Ka Shing, 78, Asia’s richest man.

His UK portfolio includes mobile phone firm Orange and cut-price chemist Superdrug.

Iceni aims to be in the UK’s top ten bottled water brands by 2010. Its product is pumped from an underground borehole at Duxford, into a purpose-built plant that uses recyclable plastic bottles.

Cambridge Water, which made a net profit of £5.62million last year, has been criticised by consumer watchdogs over plans to increase average bills by 20 per cent above the inflation rate between 2010 and 2015.

The company blames the proposed price increases on higher energy costs and an improvement programme.

Iceni managing director Brett Fleming-Jones said: ‘Our mineral water does come from the same chalk aquifer as the tap water sold by Cambridge Water.

‘But the tap water has to travel through old Victorian pipes and is often mixed with river water and water from underground reservoirs, so it needs to be treated in various ways to conform with the required high standard.

‘Whether people view bottled water and tap water as identical or not is a moot point.’