HC Deb 15 July 1992 vol 211 cc822-3W
22. Mr. Nicholls

To ask the Secretary of State for the Environment what plans he has to alter the constant K in the RPI plus K formula for water price increases.

Mr. Maclean

The Director General of Water Services is responsible for setting limits on water price increases. He will undertake a periodic review of K for all the companies at the first opportunity, and the revised limits will take effect from 1 April 1995.

Mr. Jon Owen Jones

To ask the Secretary of State for the Environment what account the Office of Water Services takes of the level of rainfall in each water company area when agreeing proposed water charges.

Mr. Maclean

Water companies have a duty to ensure that they have sufficient supplies of water available to meet demands from customers. The Director General of Water Services has a duty to ensure that the companies are properly able to finance their functions. In setting new price limits he will take account of factors which influence the costs of companies in different areas.

Mr. Jon Owen Jones

To ask the Secretary of State for the Environment if he will introduce legislation to require water companies to charge more equal rates to consumers across England and Wales.

Mr. Maclean

The Director General of Water Services is responsible for ensuring that companies can finance their functions and that in setting their charges they do not give undue preference to or unduly discriminate against any class or group of customers. Expenditure by individual companies on the provision of services necessarily varies and each must be able to set charges which reflect its own costs.