Water companies say that these increases have been necessary to pay for improvements in an industry that suffered from a lack of investment when it was run by the state and to meet stringent pollution and water quality standards.
The good news is that prices are set to level out, with a cut in real terms of around £12 by 2004/5.
The water and sewerage company whose bills have shot up the most is South West Water, where customers have faced a 72% rise after inflation. The company that has passed on the smallest price rise to its customers since privatisation is Yorkshire Water with a 30% increase in real terms.
Not surprisingly water and sewerage household bills also vary considerably across the country. If you live in the south west you could be paying £352 a year, but in the Thames region the cost of an average bill is considerably less.
Bills from the other utilities do not follow the same trend. The average electricity bill has fallen by 15% between 1991 and 1997. Initial price increases after privatisation in 1990 were curbed by Offer, the electricity watchdog. Gas bills have also fallen by around 24% and phone bills by 16%, since both industries were privatised in the mid 80s.
Table showing household bills by company
