Canberra residents will find out on Tuesday how much more they may have to pay for water and sewerage services as ACTEW Water seeks to progressively recover a revenue shortfall in excess of $200 million.

The ACT Independent Competition and Regulatory Commission will on Tuesday morning release a draft report and proposed price direction on water and sewerage services until 2018.

Depending on the factors used by the commission to make its decision, water prices could increase by up to 55 per cent.

But if lost revenue was recovered over decades instead of a shorter period of time, most households could face much smaller price hikes.

A decision will be made in time for price changes to come into force at the beginning of July.

In submissions lodged with the commission last year, ACTEW sought to recover a revenue shortfall of $238 million caused by the climactic extremes of a drought followed by floods. The government-owned corporation recommended that a revenue cap be set, with water prices adjusted more frequently to ensure it recovered reasonable costs.