WATER companies are facing tough criticism after they announced widespread price increases despite industry profits last year of £2.6 billion.

Customers of Wessex Water will see their bills for water and sewage go up by an average of £31 a year.

At 9.4 per cent, that increase is above the national average of seven per cent. This is despite profits in 2005/06 of over £133 million.

But the company can at least point to a better than average record on leakages, and did not have to implement a hose pipe ban during last summer's drought.

Consumer watchdog Uswitch.com, which compares water prices, believes the rises are unjustified.

Director Ann Robinson said: "The average household in England and Wales is now looking at having to spend, on average, over £100 per month just to provide the essentials of heating, light and water."

Wessex Water says the watchdog is tarring all companies with the same brush.

Keith Harris, finance director, said: "Our increase of 9.4 per cent on the average bill is higher than we'd hoped for. Set by Ofwat, the increase is needed to pay for all the improvements required by government by 2010.

"This investment will ensure we meet these ever tightening government and EU demands and the latest regulations, protect the environment, accommodate growth and improve service to customers."

Bournemouth and West Hampshire water company, which is raising prices by four per cent, say the industry's image has been hit recently by the actions of companies elsewhere.

Managing director Tony Cooke said: "The hose pipe ban, leakages and allegations of fraud at certain companies, have given the whole industry a bad name. The media thinks that if it's happening in London, it's happening everywhere. But our record has been very good, and with the help of our customers, we were able to avoid supply problems and bans."