§ Mr. LuffTo ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the implications of recent price settlements imposed by Ofwat on investment in water and sewerage services in Worcestershire; and if she will make a statement. [13219]
§ Mr. MeacherIn 1999 the Director General of Water Services (Ofwat) determined price limits for water and sewerage companies in England and Wales for the five years beginning on 1 April 2000. Worcestershire is within the area served by Severn Trent Water. In setting price limits for Severn Trent Water, the Director General made provision for an annual average capital investment of £391 million (May 1999 prices) over the five year review period. This is set out in "Future water and sewerage 69W charges 2000–05" in the House of Commons Library. Within this framework companies decide their priorities for meeting their planned outputs.