Householders have been warned that water bills are set to soar if the industry gets its way.

Suppliers have been telling regulator Ofwat how much they intend to charge over the next few years.

The Consumer Council for Water warned that Thames Water had proposed an average bill increase of 16 per cent above the rate of inflation by 2015.

David Bland, chairman of the CCW in London and the South East, said: "Customers made it very clear that reducing leakage was of paramount importance, and we are encouraged that Thames Water is addressing this proactively.

"Thames Water plans also need to take account of significant population growth in an area already classed as water-stressed by the Environment Agency.

"We agree with Thames' proposal for a new reservoir, as consumers in the area have told us that a safe, reliable service was important to them."

He added: "However, we believe that customers will be concerned with price rises on this scale, especially in light of many other household bill increases.

"We are concerned about the impact that Thames' intensified metering programme will have on certain groups of customers."

Severn Trent Water, which has more than eight million customers, said its bills would remain "broadly flat", rising only slightly above inflation over the five year period.

The company said customer priorities were a more resilient water supply network, stable bills and a smaller carbon footprint.

Tony Ballance, Severn Trent'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."

United Utilities, which manages water and wastewater distribution in the North West of England, said customers were set to see their average bills increase by just over 2 per cent a year during the five year period, with inflation also stripped out.

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