§ Mr. Cordleasked the Secretary of State for the Environment to what extent the average increase in water rates exceeds the rise in the cost of living since the last rate was fixed.
§ Mr. Denis Howell:The retail price index rose by 19.9 per cent. between January 1974 and January 1975. Complete information about water companies' charges is not yet available, but I understand that the average increase in the regional water authorities' water supply charges in England and Wales, 1975–76 over 1974–75, is likely to be of the order of 41 per cent.
§ Mr. Cordleasked the Secretary of State for the Environment if he will ascertain from the Regional Water Authorities, and publish, the reasons for the recent rises in water rates.
§ Mr. Denis Howell:The Water Act 1973 requires regional water authorities to break even, taking one year with another. I understand from the RWAs that the main reason for their increased charges in 1975–76 is inflation in the costs of money, labour and materials. It is for each RWA to explain its own levels of charges.
§ Mr. Cordleasked the Secretary of State for the Environment what provision exists at the present time for his Department to exercise control or supervision over the level of charges of individual water companies.
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§ Mr. Denis Howell:None. But increases in charges must conform to the Price Code. Schedule 3 to the Water Act 1945 controls certain aspects of water companies' finance.