Households were warned of water bill hikes after firms submitted their draft business plans to regulator Ofwat.
The UK's largest water and wastewater services company, Thames Water, announced it expects to raise bills by around 3%, excluding annual inflation, each year between 2010 and 2015.
United Utilities, which manages water and wastewater distribution in the North West of England, said customers were set to see their average bills increase by just over 2% a year during the five year period, with inflation also stripped out.
Thames Water and United Utilities revealed the bill increases as they outlined aims for multi-billion pound investments in water and sewerage services, as well as cost cutting schemes to drive efficiency.
All of the UK's water companies are required to submit their draft investment plans for Ofwat's scrutiny by midday, including how much they expect customers to pay.
Thames Water, which supplies 13 million customers across London and south east England, said the increases would pay for a £6.5 billion investment in water and sewerage services.
Warrington-based United Utilities - serving nearly three million customers with water and sewerage services - plans to pump £4 billion into its services.
In February consumers across the country learned their water bills will increase by an average 5.8% this year, with households in some areas seeing their annual bills soar by an inflation-busting 8%.
Thames Water said its proposals followed a public consultation to find out customers' concerns and priorities.
Thames Water customers currently pay £280 a year on average for their water. The company expects the average bill to increase to £303 in 2010-11 and £329 in 2014-15.
