§ Mr. SwayneTo ask the Secretary of State for the Environment, Transport and the Regions what plans he has to alter the water charging regime to allow the use of council tax bands as an alternative to metering. [121025]
§ Mr. MullinUnder the Water Industry Act 1999, companies must produce charges schemes, which include details of the basis on which they wish to charge for water and sewerage services to homes. Schemes are subject to approval by the Director General of Water Services.
My right hon. Friend the Secretary of State has issued guidance to the Director General on the approval of schemes for companies operating wholly or mainly in England. In considering whether or not to approve a new basis of unmeasured charging, key factors are the transitional effects of any change, any proposals for managing such effects and the impact of the new basis of charging on different groups, particularly vulnerable customers. Because of the potential social impacts on customers, the Director should not approve the widespread introduction of new unmeasured charging arrangements, without full consultation with the Secretary of State. There is no statutory bar on such arrangements being based on council tax. The Government will continue to consider any proposals that come forward provided that they address the key factors.
The Secretary of State's guidance under the 1999 Act and other background on water charging policy is set out in "Water Industry Act 1999—Delivering the Government's Objectives" published on 3 February, a copy of which is in the Library of the House.