Water bills in Watford could be set to rise by even more than anticipated after Affinity Water proposed a 25 per cent hike.

After requesting increases in July, water companies are now planning even bigger rises over the next five years, with regulator Ofwat yet to make a final decision.

Affinity, which manages water for the Watford area, had previously said it planned a six per cent increase, which would have been the lowest of any company.

But with water companies continuing to struggle, new Ofwat data appears to suggest it is eyeing a 25 per cent rise that would see the average water bill in the area soar in the coming years.

It comes after several water companies have been hit hard by fines relating to poor service and sewage dumping. The companies told Ofwat that these fines are the main reason for seeking to increase bills.

Thames Water, the UK's biggest water company, is seeking a 53 per cent rise that would see bills rise to £667 per year.

Ofwat had previously agreed to the plans put forward by water companies in July, but will now have until December 19 to make a final decision.

Under July's proposals, the average UK water bill would rise by 24 per cent - the latest suggested increases would signal a 40 per cent rise.

A 25 per cent price hike for Watford customers would be below this average, but would still represent a significant uplift from the six per cent mooted over the summer.

The regulator has said it has "made it clear that companies needed to provide better evidence" to justify the high price rises they're seeking.

Later this week, the government will also announce plans that are expected to lead to the biggest overhaul of the water industry since privatisation in the late 1980s.

The plans include the possibility of company executives being being banned from taking bonuses, pay greater amounts of compensation to customers, and even face prison time for failing to cooperate with investigations.

Affinity Water has been contacted for comment.