Water Industry (Hansard, 18 July 1995)

§ Mr. Redwood
To ask the Secretary of State for the Environment what assessment he has made of whether more competition in the water industry would lower prices and increase supply. [34378]

§ Mr. Clappison
In his policy document "Competition in the Water Industry: inset appointments and their regulation"—Ofwat, July 1995—the Director General of Water Services states that introducing competition at the wholesale level via the ability to make inset appointments has influenced prices through the introduction of more cost-reflective tariffs for larger customers. He recommends that competition between water companies would be further facilitated by changes to legislation. My right hon. Friend will consider these proposals.

§ Mr. Redwood
To ask the Secretary of State for the Environment if he will seek to lower the 250 megalitre limit on inset appointments for water under the Competition and Service (Utilities) Act 1992. [34377]

§ Mr. Clappison
The Director General of Water Services has a duty to facilitate effective competition in the water industry. In response to recommendations made by the director general at the time, the Competition and Service (Utilities) Act 1992 extended his ability to make inset appointments to existing customers supplied with 250 megalitres or more of water annually. My right hon. Friend would be happy to consider proposals for a change to this limit should the director general recommend it.
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§ Mr. Redwood
To ask the Secretary of State for the Environment what plans he has to consider new proposals to allow the use of existing water pipes by other water suppliers under a common carrier agreement. [34376]

§ Mr. Clappison
In his recent policy paper, "Competition in the Water Industry: inset appointments and their regulation"—Ofwat, July 1995—the Director General of Water Services has suggested that there may be circumstances in which it may be practicable to place a limited common carriage obligation on water companies to supply single customer inset appointments. The director general noted that there would need to be careful consideration of the implications for water quality. My right hon. Friend will need to satisfy himself of the implications before developing any proposals for change.