§ Mr. MaddenTo ask the Secretary of State for the Environment when and by whom he was first informed that approval had been given to Yorkshire Water to increase charges; what subsequent representations he has made to the director general of Ofwat on this matter; what information he requested from the director as to the grounds on which he gave approval for the increase; and if he will make a statement. [16835]
§ Mr. Curry[holding answer 26 February 1996]: Yorkshire Water's price limits, together with the price limits for all the water companies, were set by the Director General of Water Services in his thorough quinquennial review, the outcome of which was announced by the director general in July 1994. Two companies subsequently sought a referral of their new price limits to the Monopolies and Mergers Commission. In its reports, the MMC largely endorsed the director general's approach and his determinations. I am satisfied therefore that the director general's review was properly and carefully carried out. Yorkshire Water's average charge increase from April 1996 is within the price limit set by the director-general.
§ Mr. MaddenTo ask the Secretary of State for the Environment if he will make representations to those responsible for Yorkshire Water's commission of inquiry that its terms of reference should include Yorkshire Water's pricing policy. [16836]
§ Mr. Curry[holding answer 26 February 1996]: Professor Uff has been asked by Yorkshire Water to conduct an inquiry into the water supply situation in Yorkshire. The terms of reference of the inquiry are a matter for Professor Uff.
§ Mr. MaddenTo ask the Secretary of State for the Environment when members of his Department met Professor John Uff, in respect of Yorkshire Water's commission of inquiry; and on what occasions pricing policy was discussed. [16798]
§ Mr. Curry[holding answer 26 February 1996]: I have met Professor John Uff. Professor Uff has also had contact with officials, who referred him to the framework of price regulation and the regulator's decisions in his quinquennial review in 1994.
My right hon. Friend the Secretary of State has not met Professor Uff. This corrects the error in the answer my hon. Friend the Under-Secretary gave on 22 February, Official Report, column 282. I regret this error.
459W
§ Mr. MaddenTo ask the Secretary of State for the Environment if he will direct the director general of Ofwat to withdraw his approval to Yorkshire Water increasing its charges pending the outcome of(a) his departmental review of Yorkshire Water and (b) Yorkshire Water's commission of inquiry. [16799]
§ Mr. Curry[holding answer 26 February 1996]: The Director General of Water Services has responsibility for determining the limits on water companies' charge increases. Yorkshire Water's average charge increase of 5.6 per cent. from April 1996 is within the price limit set by the director general.
My Department is not conducting a review of Yorkshire Water.