Water charges for business increased by 17 per cent on average between 2002 and 2003, according to research by the Chambers of Commerce of Ireland (CCI).

There was a huge variation in water charges between regions, the study found. A company in Sligo, for example, could expect to pay €3,437 for its water per year compared with the €6,562 bill faced by a firm in Limerick city.

Moves to introduce metered watered services were welcome as they would lead to greater transparency, said CCI president Mr Mark Staunton.

However, it was essential that price increases be brought under control as many businesses were already struggling to cope with the additional cost, he said.

"At a time when businesses face a significantly increasing cost base, it is essential that water service charges do not impose another excessive and continuous increase."

But price metering needed to be consistently priced, the CCI said.

It found that, while Cork County Council charge €30 for meter reading and rental, business users in north Tipperary pay €117.20.

The cost of installing a meter also varies wildly: in Co Limerick firms pay €127, compared to €1,000 in Limerick city.

Mr Staunton said: "CCI members are willing to embrace the new system of metered water service pricing but with the clear understanding that the provision of water services should not be operated for profit.

"The Government and local authorities must also show a willingness to embrace a system that ensures consultation with local business, provides transparency in pricing and ensures value for money."