Water users face a possible 37 per cent rise in their bills for water supplies and sewerage.

Northumbrian Water has announced it is asking the regulator Ofwat to approve an inflation-busting increase that it says will take the average household bill from £206 to £286.

The rise, which would be implemented in stages between 2005 and 2010, does not include inflation, which will be added to bills automatically. Northumbria's increase compares with a national average of about 31 per cent.

About £15 of the extra £80 that the average billpayer will have to fork out will go straight to the taxman. This is because the Inland Revenue is introducing a change in the rules on Corporation Tax regarding maintenance investment.

Managing director John Cuthbert said: "Although we have managed to maintain the high levels of service we provide and will be investing over £800m in water and sewerage assets in the North-East during the five-year period from 2000, our current price levels are unsustainable.

"Maintenance spending will increase by ten per cent."

Ofwat will decide whether to approve the rise in November 2004 after consultation. People can give their views to WaterVoice on (01325) 464222.