LONDON (ShareCast) - Consumers face above hefty increases in the their water bills as the water utilities submitted their revenue and expenditure plans for 2010 and 2015 to regulator Ofwat.

United Utilities proposes an average annual real price increase of 2.7% across the five-year period to pay for a a total capital investment programme of £4bn.

The utility added that average household bills should rise by just over 2% in real terms on average each year over the period. The £4bn programme consists of approximately £1.6bn for the water service and approximately £2.4bn for the wastewater service. United Utilities Water added it is aiming for a 1.5% annual improvement in its underlying operating efficiency.

The group wants regulator Ofwat to allow it to make a fully post-tax return of 4.7%, which compares with a cost of capital of 5.1% assumed by Ofwat at the last price review in 2004.

Severn Trent indicated its plans would mean prices rises "only slightly above inflation over the five year period". It has upped its planned capital investment programme by 23% to £3.2bn.

Northumbrian Water said its prices would rise by 1.3% annually over the next review period while the privately owned Thames Water indicated it expects bills in London to rise by about 3% a year above inflation.

• News Channel