Northumbrian Water has reported a 54 per cent increase in half-year profits following a recent rise in water bills.

Pre-tax profits were £64.3m for the six months to 30 September, and the interim dividend was lifted to 3.52p a share, from 2.87p a year earlier.

Water and sewerage charges rose by 9.9% in the wake of a regulatory review.

The company provides water and sewerage services to 2.6m customers in the North East, as well as water services to 1.7m people in Essex and Suffolk.

Ofwat approved a £28 rise per bill by 2010 because of the cost of upgrading mains and meeting "tough and challenging" efficiency targets.

The company said the price hikes would help it to meet the priorities highlighted by customers and the water authorities over the next five years.

Full story in The Northern Echo on Thursday.