§ Mr. John Ellisasked the Secretary of State for Prnces and Consumer Protection whether, in view of consumer concern at the charge for water and sewerage, he intends to refer the charges of water authorities to the Price Commission.
§ Mr. MaclennanNo. The water authorities are required to pre-notify the Price Commission of their intention to increase prices. Under the powers conferred on it by the Price Commission Act 1977, the Commission is investigating the Thames Water Authority's proposals but it decided not to take any action in respect of the other authorities.
The immediate effect of initiating the investigation and the operation of the safeguard regulations was that the Thames Water Authority's increase for 1978–79 has been less than it would otherwise have been. Although under the safeguard regulations the authority has been allowed increases which will raise revenue by 7.2 per cent. it had originally proposed increases to raise revenue by 9.5 per cent.
126WThe Price Commission is due to let my right hon. Friend know the outcome of its investigation by 23rd May and he will of course publish the report.