Thames Water has submitted a request to the industry regulator Ofwat to raise prices.
The company has asked for permission to increase its bills by about £29 per household during 2014-15, with the money needed by the firm to pay for preparations for the construction of the Thames Tideway Tunnel.
Stuart Siddall, Thames Water's chief financial officer, explained that the company is estimating the potentially significant costs and revenues it will face in the next five years.
"Either the company or Ofwat can seek an adjustment, upwards or downwards, once the actual costs and revenues are known," he said.
Thames Water has 14 million customers across the south-east of England and they would all be affected should Ofwat approve the plan to put prices up.
Last month, Thames Water confirmed that it is to build a new pipeline which will secure supplies for customers in Berkshire and Oxfordshire.
Andrew Popple, capital delivery manager for Thames Water, explained the new pipe will be able to carry more water.
Find up to date information on the FTSE 100 and spread betting strategies at City Index