A WATER watchdog warned on Monday that people in Sidmouth could soon face sharp price increases in their bills. South West Water is preparing to raise its charges over the proposed level of inflation between 2010 and 2015.

A WATER watchdog warned on Monday that people in Sidmouth could soon face sharp price increases in their bills.

South West Water is preparing to raise its charges over the proposed level of inflation between 2010 and 2015.

The water company outlined in its draft business plan released on Monday that the average water bill would increase by £7 per year, an increase of 1.4 per cent excluding inflation.

However The Consumer Council for Water has warned consumers that the average metered water and sewage bill could rise by 12.5 per cent from 2010 to 2015, and a price hike of 40 per cent may affect people with un-metered bills in the same period before inflation.

Charles Howeson, chair of the Consumer Council for Water Western, said: "We

are concerned that South West Water's investment proposals will push prices

up beyond what customers are willing and able to pay."

South West Water has responded to criticism by outlining areas in the company they are intending to invest money in to benefit the environment and the economy, whilst taking consumers needs into consideration.

Chris Loughlin, South West Water chief executive, said: "In response to what our customers told us, we have put forward a plan with prices as low as possible in each year and no sudden price shocks.