Water Charges (Hansard, 7 February 1990)

§ Mr. Trippier

My right hon. Friend the Secretary of State for the Environment has now determined the charges limits for six English companies and has made firm proposals to a further 20. My right hon. Friend the Secretary of State for Wales has determined the charges limits for the two companies based in Wales. I have placed in the Library of the House copies of a table showing the figures for each company. Proposals will be put to Mid Sussex shortly. Our proposals will allow charges to rise by 6.5 per cent. a year on average in real terms over the next five years and by less than 2 per cent. a year on average in the following five years. Over the 10 years as a whole this represents average increases each year of only 23p (in current prices) on the monthly bill. Where determinations have not yet been made, companies have 28 days within which to make further representations. Once determined charges limits may only be adjusted or reviewed by the Director General of Water Services.

In determining these limits we have considered with each company its future programmes, operating costs and financing needs to the end of this century. We have had particular regard to the improvements in drinking water quality required to secure or facilitate compliance with the requirements of the Drinking Water Quality Regulations (which incorporates the standards of the EC drinking water directive), and to the investment required to renew aging infrastructure assets and to augment water resources so as to overcome the kind of shortages experienced during recent droughts. The proposed limits provide for total investment by the 29 companies of £1.7 billion (in current prices) over the decade to the year 2000.

My right hon. Friends the Secretaries of State for the Environment and for Wales have also determined the infrastructure charges limits for 27 of the statutory water companies and made revised proposals for one other. Copies of a table showing these have also been placed in the Library. The average charge will be £593, at 1990–91 prices.