HC Deb 22 May 1990 vol 173 c108W
Mr. O'Brien

To 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.