HOUSEHOLD water bills in Yorkshire are set to soar from next April - and there are warnings that some people might struggle to pay.

Over the next five years Yorkshire Water invoices could leap on average by £36 to £279 before inflation.

Of that, as much as £10 extra might have to be paid in the first year to reflect the impact of costs on the company.

But while former York Waterworks customers will feel the impact, they will continue to get lower bills than the rest of the county, keeping a promise of maintained differentials made by Yorkshire Water's parent company Kelda when it took over York Waterworks in 1999.

Water regulator OFWAT today published draft price limits allowing these price hikes - but it is nowhere near what the water company wanted.

Yorkshire Water was seeking a £50 increase over the five years, but OFWAT rejected this after close scrutiny.

Philip Fletcher, director general for OFWAT Water services, said that the £36 - slightly more than the £33 average limits suggested for other water companies nationally - would strike a fair balance for Yorkshire customers and the company.

The £36 extra plus inflation until 2010 was enough to enable Yorkshire Water to invest more than £1.3 billion to carry out, for example, renovation of nearly 2,000 kilometres of water distribution mains as well as schemes at 22 water treatment works to deal with deteriorating raw water quality

He said: "I am convinced that after reviewing the company's business plan carefully that the increase is necessary. It is essential to maintain a water service in which customers can have confidence.

He added: "We have worked hard to ensure that the price limits are no higher than they need to be. The longer term picture is that the customers of Yorkshire would by 2009 be paying four per cent more on average, before inflation, than in 1999."

And he promised to "listen carefully to all comments before reaching conclusions on final price limits in December."

But Water Voice Yorkshire has warned that low-paid families will struggle to meet the proposed rise.

Mohammed Ajeeb, chairman of the customer watchdog, said: "Yorkshire is a poor region. Levels of customer debt in the water industry have continued to grow over the past few years.

"This proposed increase may not seem to be as bad as expected but I fear there will be a significant number of customers on low or fixed income who will experience real difficulties in paying their water bill."

He added: "We are asking the Government to seriously consider help for these vulnerable customers."

Mr Ajeeb also warned of the "hidden costs" such as fluctuating levels of inflation over the coming years.

A spokesperson from Age Concern York said: "We are relieved that the water bills will not increase by as much as we had feared. However many older people in York will still be very concerned about above-inflation increases in the cost of water.

"Many older people live on low fixed incomes and will find it difficult to finance higher water bills. It is essential that the basic state pension is increased."

Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, said: "We are pleased Ofwat have listened to the consultation and that the increases aren't as large as they could have been.

"We would like to see those increases invested properly in improvements in the environment and quality of the water."

Updated: 10:27 Thursday, August 05, 2004