YORKSHIRE Water has asked industry watchdog Ofwat to reconsider limits imposed on prices from 2000.
The company claims it has been caught out by changes that it had not anticipated when the last price review was completed two years ago.
A ban on disconnections for non-payment of bills, new rules on the monitoring of water quality and higher construction costs are among the factors driving costs up.
As a result, the firm says it now needs to generate more income - and would like permission to raise the rates.
Director general of water services Philip Fletcher said: "We will be looking at the company's application carefully to see whether the financial changes are great enough for us to reset the price limits.
"In reaching our decision, we will ensure that customers will not pay more than is necessary to allow the company to continue to deliver an efficient service."
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