Yorkshire Water wants to raise its prices for the next five years despite recommendations from industry watchdog OFWAT that it should cut them.

The proposed price increases are outlined in a draft strategic business plan for the years 2000-2005 which OFWAT has until November to consider.

Yorkshire Water, which made £215m profit in the last financial year, plans an average increase of £6 per household per year over the next five years, or 2.5 per cent per year in real terms. It says customers back the rise which will help pay for a £1.7 billion investment programme.

A spokesman for OFWAT's Yorkshire customer services committee said last November OFWAT's director general Ian Byatt had asked water firms to cut prices by at least 15 per cent.

He admitted this was before the Government decided what work should be done by the water companies, a factor which could affect this initial figure.

But the spokesman added: "Shareholders have had ample returns from efficiencies made by Yorkshire Water over the last couple of years and it's about time customers had the same."

A Yorkshire Water spokesman said the plan had been put together after talks with 1,100 business and domestic customers and consultation involving over 60 organisations.

The spokesman said: "Customers have told us they would like to see stable prices or moderate increases over the five-year period.

"We would like to think that our business plan reflects the views of our customers but obviously these proposals are not final - it will be up to the Director General to make the final decision."

A final decision on price limits will be made this November, which the water firms can appeal against.

The changes will then come into effect next April.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.