§ Mr. MorganTo ask the Secretary of State for the Environment (1) what information he has about the rate of increase in connection charges for new house building by each utility company since privatisation;
(2) what discussions he has had with utility companies regarding the future level of increase of connection charges for new house building.
§ Mr. BaldryUnder section 79 of the Water Act 1989, a new system of infrastructure charges was introduced from 1 April 1990 for new connections to domestic water or sewerage services. The initial limits on these charges set by my right hon. Friends the Secretaries of State for the Environment and for Wales are increased each year in line with the retail prices index.
Increases in other charges made by companies, including any other charges related to connections, are restricted to the increase in the retail prices index plus the K factors set by my right hon. Friends the Secretaries of State for the next 10 years and laid down in companies' instruments of appointment, copies of which are available in the Library.
Both the K factors and the limits on infrastructure charges are now subject to review and amendment by the Director General of Water Services.