Householders should not be expected to foot the whole bill for vital improvements to water services in England and Wales, a consumer watchdog said yesterday.

WaterWatch believes shareholders in the major water companies must shoulder part of the cost by accepting lower returns on their investments.

Ofwat, the water regulator, announced some residential customers will see bills rise to fund maintenance work, environmental improvements and to guarantee future demand.

Water UK, which represents the 22 water companies in England and Wales, estimates £21 billion will be needed between 2005 and 2010 to fund the programme.

Friday October 17, 2003