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The BBC wants to increase the licence fee by 2.3% above inflation to boost its programmes and digital services.
The corporation is to present its bid for the next licence fee settlement to a House of Commons select committee.
If the government accepts the BBC's proposal, the fee would rise by £3.14 per year until 2013, not including inflation. The current fee is £126.50.
BBC director general Mark Thompson said the rise would fund the switch-over to digital TV and BBC on-demand services.
The BBC says it needs an extra £5.5bn over the next seven years to pay for more original programmes, new digital and local services and increased costs.
The corporation says it can fund £3.9bn of that through cost-cutting measures and commercial profits. But the proposed licence fee increase would fund the remaining £1.6bn.
"We know that licence fee payers find the licence fee a burden in their household costs," Mr Thompson said.
"But on the other hand, we also know that they are overwhelmingly in favour of the BBC spearheading these new digital services.
"It is a bigger licence fee, but the BBC gives out of it bigger digital TV and digital radio services. It is a big step towards digital Britain."
The corporation's valuation kicks off negotiations that will eventually see the government set the new annual fee.
The current deal ends in April 2007 and the next will last for seven years. The licence fee currently generates £2.94bn a year for the corporation.
Digital switchover
Under the current deal, set in 2000, the licence fee goes up by 1.5% above inflation per year. It will increase to £128.50 next year, not allowing for inflation.
Culture Secretary Tessa Jowell has said the corporation will get some extra money to spearhead the UK's switch to digital TV by 2012.
The corporation aims to make its TV programmes available on the internet, to make its archive more accessible and invest more in local TV and radio services.
The BBC has also pledged to show fewer repeats and move some of its operations out of London - although a planned move for some of its departments, including sport, children's productions and Radio Five Live, to Manchester may depend on the licence fee settlement.
Mr Thompson and BBC chairman Michael Grade have already made a series of shake-ups, including almost 3,800 job cuts and internal value-for-money drives.
But culture select committee member Nigel Evans MP said: "There are millions of people out there who don't get inflation-busting increases whatsoever."
"How have you got the nerve to come here and say you want to push up the licence fee to near £180 and expect those people to stump up the cash?
"There is a poll tax on their TVs and they have got to pay it."
The BBC said research found 81% of the BBC audience believed the licence fee was good value for money and more than 40% would be prepared to pay twice the current licence fee or more.
The negotiations come as the government prepares to set out the corporation's role, function and structure in its next 10-year royal charter, which will also come into force in 2007.
What i have NEVER understood about the licence fee is why if ITV, CH4, CH5 and sky and every other friggin television station terestrial, sattalite or cable can make a profit just by adding adverts to there programming, why the hell cant the BBC ?
Ok so sky and cable make you pay a monthly fee for there services too BUT they also provide 24/7 movies, NEW entertainment, more than 4 poxy channels and still manage to do it without any licence fee money.
I would much rather they stuck adverts into there programms and go out free like the other terestrial stations than charge me over £120 to watch sations I may watch for 10 hours in a year.
The daft thing is that even if you dont watch "the beeb" or listen to it or visit them on the web or any other trumped up media output they have you still have to pay the fee
How is it they continue to get the backing they do ? Why dont they just cancle there licence.
I agree... And you can't get around it >.< Own a TV, and unless you watch ONLY DVDs and Videos, you HAVE to pay the license >.< Buy a freeview tv box, you STILL have to pay a license >.< Get Sky and cut the arial lead so you can't get terrestial tv, you STILL have to pay a license >.< Is stupid >.< Even if you Don't watch the BBCs at all, you STILL have to pay the sodding License >.<
BBC seeks increase to licence fee
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