WATER company bosses were today under fire from customers for imposing huge increases in bills.

Southern Water, which supplies water and waste treatment to Hampshire residents, was allowed to put up charges by an average £65 over five years by industry regulator Ofwat.

But instead of spreading the increase evenly, company chiefs have gone for an average of £40, almost two-thirds of the full amount, in the first year in a bid to maximise their income.

There was barely a ripple of protest when the Daily Echo revealed the 16 per cent rise exactly one month ago. However, householders, pressure groups for the elderly and MPs are now lining up to criticise the increase.

Water bosses claim the increase is needed to help fund £1.8 billion of improvements.

It means the average household water and sewerage bill for Southern Water customers will increase to £324 by 2010.

However, instead of spreading the increase evenly, company chiefs have gone for an average of £40 - almost two-thirds of the full amount - in the first year in a bid to maximise their income.

There was barely a ripple of protest when the Daily Echo revealed the rise a month ago.

Now that bills have started dropping through people's letterboxes, there has been a chorus of disapproval.

Wade Hampton, of Old Garden Close, Locks Heath, said: "This is a completely outrageous increase of charges which, taken with the increase in gas and electric prices and the stupefying increases in council tax of recent years, is putting a huge and wholly unfair burden on a great many ordinary citizens and families."

Chris Perry, director of Age Concern in Hampshire, added: "Water rates are still very good value for money, even with this increase, but any increase in price above inflation, or 2.5 per cent, will decrease the amount of money pensioners have to spend. The more stress put on people with this sort of increase will mean less money for other things like food. It will eventually lead back to increases in council tax and income tax, creating a vicious circle."

Don Harper, secretary of the Southampton Pensioners' Forum, said many elderly people were going to have to grin and bear it.

He said: "There are no reductions for pensioners.

"When all the bills are added up it's more than the annual increase in state pension. Everyone will suffer from the increase, but there is little that can be done."

Alan Whitehead, MP for Southampton Test, said: "While I understand that increases are necessary to improve water quality and environmental standards, I also think Southern Water is going about it the wrong way. I think the front-loading approach is incorrect. It means they are trying to get maximum money from the outset."

Julian Lewis, MP for New Forest East, said: "This will come as a body blow to people on fixed incomes, but one must ask oneself how much is caused by the increased tax on big companies imposed by this profligate government."

A Southern Water spokesman said improvements would be made to the infrastructure and water quality, but that costs were still lower than they were six years ago.

She said: "The cost of water and waste water services in Southern Water - in real terms - remains lower than it was in 1999 when the average household bill was £303, compared with the current £259 a year."