INCREASED charges for Northumbrian Water customers this year were "regrettable but necessary", according to a consumers' group.

WaterVoice Northumbria, which provides an independent voice for water and sewerage customers has released its annual report.

The report says that customers of both Northumbrian and Hartlepool Water continue to benefit from prices among the lowest in the country, and service standards among the highest.

Northumbrian Water applied to Ofwat for higher price limits for 2004-05 than was originally set in 1999.

The application was based on lower than expected revenue, increases in customer debt and additional costs for monitoring of water quality.

Ofwat granted the higher price limit, leading to an average increase in charges of ten per cent to customers in April.

The report says: "Following examination of the case put by Northumbrian Water and the assessment by Ofwat, we accepted that the increase was regrettable but necessary.

"Investment in the water industry, rather than price reductions, is in the long-term interests of existing and future generations of customers."

WaterVoice said the increase was a disappointment for poor and vulnerable customers.