The leading body for the water industry has announced plans to improve Britain’s infrastructure between 2010 and 2015 with £27bn funding. According to Water UK, the £27bn investment is in addition to £80bn already invested by the Water Industry since 1990.

The announcement is thought to counter any resentment against the planned increase in water bills, despite companies making huge profits. An average increase of 2% above inflation every year in water bills will be too high, especially for the many already struggling to cope with the impact of soaring fuel prices.

Pamela Taylor, the chief executive of Water UK, claimed the average increase in water bills was less than 12p per week. She added the industry needs to invest £250bn for replacement of mains and sewers; it is currently spending £2 billion a year on renewal.

Investment can not be postponed indefinitely since it would result in collapse of services, which would annoy customers and would also damage the economy and environment. The industry highlights its accomplishments post-privatisation, and claims that the leakage rate of 228 litres per property each day has been cut down to 149 litres.

According to Regina Finn, chief executive of Regulator Ofwat, the industry’s draft business plan would be examined. The regulator would make sure that each plan takes due note of customer concerns and also meets the expectations of the Water industry.