Families face soaring water bills as energy firms are set to unveil massive profits

As much as £30 could be added to the typical annual outgoings as the bills are expected to rise by up to 10 per cent in England and Wales from April.

On average bills will rise by 7.5 per cent, taking a typical demand up £23.40 to £335.40.

As families wake up to the shock that they are having to fork out more money they could be forgiven for feeling a little angry as it emerged that the energy companies are about to reveal huge profits.

The 'Big Six, suppliers, together with their parent companies, will announced combined profits of around £15billion between now and the end of May.

Like energy firms, water suppliers have also enjoyed bumper profits, causing criticism that they put the interests of shareholders before customers.

OFWAT, the industry regulator, is expected to confirm the increases by the end of the month.

It has effectively indicated what the rise will be by outlining the maximum increase permissible of up to 10 per cent.

CCW policy manager Deryck Hall said water companies rarely set prices below the maximum.

He added it could eventually lead to one in five people being in 'water poverty'.

He said: "Charges should not be as high as this. The industry has made considerable profits in the last couple of years and we think customers should share in them.

"This is going to put a lot people into water poverty under the Government's own definition, which means water bills taking up more than three per cent of net income after housing costs.

"Soon 20 per cent of all households could fall into that bracket."

On average bills have gone up from £266 in 2003-4 to £312 in 2007-8.

Suppliers have blamed higher wholesale costs for the rises.

A spokesman for WaterUK, which represents the water industry, said the increases in price were necessary to compensate for years of under-investment.