London Annual water charges will exceed £300 under proposals to be submitted to regulators this morning.

Thames Water said that it expected bills to rise from the current average of £280 to £303 in 2010-11. In February people were told that their bills would rise by an average of 5.8 per cent this year, with some areas having 8 per cent rises.

Thames Water and its competitors are submitting draft business plans to the regulator Ofwat today.

David Owens, the chief executive of Thames Water, said: “Thames customers have enjoyed the lowest bills in the industry for many years, but we now need to make essential investment to secure their services for the future. This is particularly true for London, where the water and sewerage infrastructure is ageing. There will be an inevitable impact on bills, but even so, we will be able to keep them below the industry average.”

The company is currently replacing London’s oldest water pipes. Other projects include a desalination plant in East London which will be used for water taken from the Thames to cover droughts.

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