21 January 2003
BECKETT SETS SCENE FOR FUTURE WATER PRICE LIMITS
Guidance to help Ofwat set water price limits for the years 2005 - 2010 was issued today by the Secretary of State for Environment, Food and Rural Affairs, Margaret Beckett.
The guidance suggests that this periodic review should be characterised by:
- closer attention to the existing water and sewerage system, based on sound information, including the maintenance of assets, tackling sewer flooding and controlling leakage;
- some further measures to improve the environment, again based on sound information, and with regard to legal requirements; and
- due weight to the economic and social effects of policies, especially the impact of water bills on vulnerable customers, both nationally and in individual company areas.
The Director General of Water Services (Ofwat) is the independent regulator who sets price limits for water companies. Ofwat undertakes a periodic review of water prices every five years. It is an opportunity for all those involved in water to work together to take stock and set agreed policies and programmes for the future across the water and sewerage industries. Ofwat launched the current review on 15 October 2002, which will result in new price limits for the period 2005 – 2010. The Government guidance published today is to assist Ofwat, other regulators and water companies on the policies to be considered as part of the review.
In a Ministerial Statement to the House of Commons, Secretary of State Margaret Beckett said:
“The guidance is about ensuring regulators and water companies take account of future policies affecting the water and sewerage industries, be they environmental, social or economic. Previous periodic reviews have produced ambitious and successful programmes of improvement in water and environmental quality. The Government will expect these gains to be maintained and, where possible, further improvements to be made. In deciding how far and how fast to take improvement programmes the Government will also take account of the effects on customers.”
The guidance sets out potential policy requirements that may affect water companies in the period 2005 – 2010. The Government invites the regulators to work with the water companies to produce assessments of the costs and benefits of potential policy choices.
Margaret Beckett says in the guidance:
“It is people who matter, whether paying their water bills or enjoying the benefits of clean water through the tap and in the environment, and our policies must strike the right balance in their interests.”
Notes to editors
- Printed copies of today’s guidance are available from Defra Publications at: Admail 6000, London, SW1A 2XX, Tel: 08459 556000, Email: defra@iforcegroup.com The guidance is also available on the Defra website at www.defra.gov.uk. The guidance should be considered as a subsidiary document to Directing the Flow – Priorities for future water policy, which Defra published in November 2002.
- Ofwat launched the periodic review on 15 October 2002, with their consultation paper Setting price limits for 2005-10: Framework and approach. They will set the new price limits in November 2004 www.ofwat.gov.uk
- The results of the first stage of a survey of customers on the periodic review were published on 15 November 2002, titled The 2004 Periodic Review: Research into Customers’ Views, available in hard copy from Defra on 020 7944 4294 or online at www.defra.gov.uk/environment/water/industry/research/index.
- The guidance has been prepared in consultation with regulators (Ofwat, the Environment Agency, English Nature and the Drinking Water Inspectorate). The advice given from the Environment Agency and English Nature to the Secretary of State has been published on the Environment Agency’s website at www.environment-agency.gov.uk/business/425378
- This guidance applies to companies operating wholly or mainly in England. The Welsh Assembly Government is responsible for similar guidance in Wales.
A - Z Index
| Business and Technical | Consumer Information | Contacting us | DWI Home Page | News | Product Approval | Search our site | Wales |
Drinking Water Inspectorate,
55 Whitehall,
London, SW1A 2EY
Telephone : 020 7082 8024
E-mail: dwi.enquiries@defra.gsi.gov.uk
Published 21 January 2003
Return to Press Releases Index
Return to Drinking Water Inspectorate Home Page
Department for Environment, Food & Rural Affairs (DEFRA)Home Page
The National Assembly for Wales / Cynulliad Cenedlaethol Cymru Home Page
Web site terms
© Crown copyright 2002