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.”