SEVERN Trent Water customers in the two counties should not experience huge bill rises after the firm said its charges would remain ‘broadly flat’.

The supplier’s prices will rise by about one per cent above inflation during the five-year period between 2010 and 2015.

The rise would see the average customer’s yearly bill of £292 rise by £3 over the total five year period. In other words, people will pay less than an extra penny a day.

The organisation announced the modest rise in its draft business plan, which was released along with those of a number of other water suppliers yesterday to meet Ofwat regulations.

The plans will be used as a starting point for discussions to decide water price limits up until 2015.

Tony Ballance, Severn Trent’s director of regulation and competition, said: “We believe our draft plan provides the best balance between improved services, the needs of the water environment and a cost that customers are willing to pay.

“Customers tell us that ensuring a reliable, safe water supply is their first priority, and we reflect this in our plan.”

He said the company also intended to reinforce its network, install additional flood protection at sites at risk of river flooding and reinforce power supplies to reduce the risk of power failures affecting the network.

He added: “In addition, customers want us to ensure charges are fair and bills kept as low as possible.

“Our bills are already among the lowest in the UK and we intend to keep them that way.”

The news was welcomed by Sir James Perowne, chairman of the Consumer Council for Water Central and Eastern, who called it good news for Severn Trent customers.

He said: “That Severn Trent at this stage believes it can deliver necessary investments and additional benefits to consumers without raising prices above the rate of inflation demonstrates that the company thought of consumers first when drafting their five-year business plan.”

He added the organisation was also encouraged that Severn Trent planned to increase spending by 23 per cent to improve its service.