§ Dr. Glynasked the Secretary of State for the Environment what is the percentage increase in the combined charges for water, sewerage and environmental services levied by the Thames Water Authority for the last half-year compared with the previous half-year; and why such increases have been permitted above the Government's guidelines.
§ Mr. Denis HowellUnder the Water Act 1973, it is for each water authority to set its charges at the levels required to meet its statutory obligations and to justify those charges to its consumers. Such charges are set one year at a time, and it is therefore necessary to compare one full year with another. The position is further complicated in the Thames Water Authority area by changes in 375W methods of charging, including the introduction of a two-part tariff, so that it is not possible to make direct comparisons for the bills of individual water users between 1977–78 and 1978–79.
The authority originally proposed to set its charges at a level which would produce an overall increase in revenue of about 9.5 per cent. over 1977–78. These proposals are now under investigation by the Price Commission and the increases in charges actually implemented, which will produce an increase in revenue of about 7 per cent., are in accordance with the Prices and Charges (Safeguards for Basic Profits) Regulation 1977.