Average water bill 'to reach £330'

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Ofwat said water and sewerage bills across England and Wales would rise by an average 1.5% plus inflation at 4.3% in 2008-09.

But households in some areas will see their annual bills soar by an inflation-busting 8%.

The changes will mean average household water and sewerage bills increasing by around £18 to £330 per year, Ofwat said.

But customers of Southern Water and Wessex Water will see their water and sewerage bills rise by 7.8%.

Yorkshire Water and United Utilities' customers will be hit with increases of 7.5% for water and sewerage.

Dee Valley Water, which supplies water-only services to households in north east Wales and the north west of England, will bring in price rises of 9.4%. Bristol Water, which supplies water only, will bring in price hikes of 8%.

The UK's largest water and waste water services company, Thames Water, which supplies 13 million customers across London and south east England, will bring in a 3.8% price rise.

Ofwat chief executive Regina Finn said the regulator approved water firms' bill changes only when it was satisfied the charges were fair.

"Clearly any bill increases are going to be unwelcome, but these price rises are essential to enable companies to continue to provide high-quality, secure water and sewerage services both now and for future generations," she said.