There's confusion over how much people in Dover will be paying for their water during the coming year.

Folkestone and Dover Water announced a 5.6 per cent increase in its prices for 2009-2010 following approval by the water regulator Ofwat.

But Ofwat also announced that prices would be going down by 0.3 per cent.

The water company said the overall charge would increase by 2.6 per cent above the inflation rate of three per cent. The extra money will enable the completion of a major £33m capital investment programme due to end next year.

The investment programme is aimed at securing a long term sustainable water supply for the area and includes the development of new sources and the significant improvement of treatment and distribution systems.

More than 60 per cent of customers are now on meters. Average metered bills will be 45p per day (£164.23 a year) and the average unmetered bill will be 64p per day (£232.25 for the year).

The 2009/2010 price rises were agreed with the regulator in 2004 as part of a five year plan covering the period 2005 to 2010. The rises for 2009-2010 will take effect from the beginning of April.

Folkestone and Dover Water Managing Director David Walton stressed that price rises were agreed within a strict regulatory framework.

But Ofwat chief executive officer Regina Finn said the average water bill for Folkestone and Dover Water customers was set to fall by 0.3 per cent.

"A rate of inflation is factored into this decrease. This means that the average Folkestone and Dover household customers' water bill in 2009/10 will be fall by around £1 to £182."