Thames Water made profits of £150m last year, and gave shareholders £92m - so why is it wanting to charge customers an extra £30?
Homeowners and businesses have been urged to use water "wisely" despite one of the wettest years on record in 2012.
Householders in the South are to be hit with the largest increase in water bills this year.
Thousands of homes may be without water this morning after a burst main affected the supply in Reading.
The pipe was damaged on the A33 close to the Fobney water treatment works.
Thames Water has so far had 200 calls from residents who have no water supply.
A spokesman said work was underway to reconnect homes.
He added that bottled water may be distributed if things do not improve soon.
Thames Water have responded to claims its customers could see their bills could rise by as much as £80 a year to help pay for a £4.1bn super sewer in London.
A spokesman said: "We previously made it clear that bills need to rise to pay for the cost of the Thames Tideway Tunnel and are now able to give our customers advance warning of the likely increase and the timing.
"Ofwat sets limits on water bills in line with the work that water companies need to do, and will scrutinise the Thames Tideway Tunnel costs to ensure they are kept as low as possible."
Thames Water engineers have been able to return water supplies to more than four and a half thousand homes in Oxfordshire.
A burst water pipe caused disruption to supplies around Carterton this morning.
A spokesperson said they have been able to divert water through other parts of the network.
Thames Water is facing legal action from residents who have seen their homes flooded repeatedly with sewage.
Several homes in the village of Great Bedwyn near Marlborough in Wiltshire have been affected for years. One resident has seen her home flooded three times in just ten days. Click below for full report
Southern Water and Thames Water have now lifted their hosepipe bans. The restrictions which have been in place since April were eased at midnight in response to the recent heavy rainfall and higher levels of water at reservoirs.
After two days of flooding it's hoped people can begin clearing up their homes in West Sussex today. Southern Water and Thames Water have both announced the end of their hosepipe bans.
Is one day of sunshine going to be enough to save our fruit crops in the Garden of England? Sangeeta spoke to Mike Roser at the National Fruit Collection at Brogdale in Kent, and asked him what effect the drought and then the wettest April on record has had on the fruit trees?