§ Mr. IllsleyTo ask the Secretary of State for the Environment (1) what levels of increase in water charges have been agreed between the Government and the water companies over the next nine years;
(2) what estimate of inflation has been used in the calculation of water charges for the next nine years.
§ Mr. TrippierMy right hon. Friend the Secretary of State for the Environment set limits (K factors) on the extent to which water charges may be increased over and above the increase in the retail prices index for the 10 years from 1 April 1990. Lists of the K factors for each water and water and sewerage company were deposited in the Library of the House. In determining the K factors assumptions were made about future inflation levels, but the K factors themselves would have been affected very little by alternative inflation assumptions. Responsibility for overseeing water charges and for any amendments to the K factors for a company falls to the Director General of Water Services.