HUGELY profitable private water firms are planning to hike bills for cash-strapped households despite the cost-of-living crisis, industry regulator Ofwat warned today.

Chief executive David Black said suppliers want bills to rise to fund infrastructure investment, even though the sector is coming under increased scrutiny over financial uncertainty, dividend payouts and environmental failures.

The GMB union slammed the possible move as an “utter disgrace when companies have showered shareholders and bosses with billions.”

Britain’s largest supplier, Thames Water, is scrambling to secure the funding it needs to avert collapse as it struggles with a whopping £14 billion debt pile.

Mr Black attempted to defend Ofwat’s performance and claimed customers will not be made to cover the cost if the widely condemned firm folds.

He told BBC Radio 4’s Today programme: “Provisions are there to impose what’s called a special administration — a form of insolvency process that’s designed to protect the interests of customers, and services will be maintained.”

Following reports in the Times newspaper that water bosses are planning to raise costs by up to an eye-watering 40 per cent, Mr Black said: “We expect companies will request increases in bills at the next price review.

“[This is] to fund larger investment programmes and those programmes will deliver improvements to the environment.”

GMB national officer Gary Carter said: “Water companies have showered shareholders and bosses with billions while our infrastructure goes down the plug hole.

“For them to then expect customers and workers to stump up the money to stop leaks and clean up sewage — not to mention service water companies’ massive debts — is an utter disgrace.

“Ofwat has failed miserably to regulate the water companies and should stop trying to defend the indefensible.”