WATER and sewerage bills could rise by more than a third over the next five years unless the pace of environmental improvements is slowed down.

Water industry regulator Ofwat's North West Customer Service Committee has written to the Director of Water Services, who is currently scrutinising North West Water's business plan as part of his review of price limits for 2000-2005, criticising the plan for improvements.

According to the company's plan, bills will have to rise by 5.8 per cent above inflation each year for 2000 to 2005 in order to fund an investment programme costing £3.7billion.

Maurice Terry, chairman of the North West Customer Service Committee, said: "There is still much to be determined, however, as it stands we believe that price rises at this level are unaffordable and unacceptable to the vast majority of the region's customers.

"We know that environmental improvements are necessary to improve the region's river and bathing water quality, and we fully support improved standards.

"However, in market research carried out by ourselves and North West Water, customers have told us that they support environmental improvements, but only at a pace which results in stable prices.

"We believe that, as a result of the decision to accelerate the speed of investment, the plan fails to deliver this objective. "The programme timings must be re-addressed by the Government, the Environment Agency and North West Water to provide a plan that is affordable to customers in the region. The plan is too much, too soon and too dear."

The Director General of Water Services sets the companies' price limits and will take into account the views of customers and watchdogs when making his draft determinations on July 27.

Following further consultation final decisions on price limits will be published in November.

Today North West Water's deputy managing director, Bob Armstrong, supported comments made by the Customer Service Committee.

He said: "While we remain committed to delivering long term benefits for our customers and the environment, there is no doubt that this huge investment programme will put pressure on bills.

"Our customers tell us they would prefer prices to stay the same or rise slightly to pay for investment, so we are continuing to push for the programme to be carried out at a more measured pace, minimising the impact on bills.

"We want a solution that's right for our customer and right for the region."

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