§ Mr. O'BrienTo ask the Secretary of State for the Environment what was the inflationary factor used when determining the new infrastructure charge limits agreed for the new water companies; and if he will make a statement.
§ Mr. Heathcoat-Amory[holding answer 18 May 1990]: In determining the infrastructure charge limits it was assumed that construction costs would move relative to the RPI as follows
Per cent. 1990–91 +3.6 1991–92 -0.2 1992–93 -3.7 1993–94 -4.6 11994–95 0 1 and subsequent years. and that the RPI would increase by 5 per cent. in 1990–91. After 1990–91 the limits may increase by the RPI unless they are subject to review by the director general in the context of a review of the general charges limits.