§ Earl Russellasked Her Majesty's Government:
Whether they agree with Yorkshire Customer Service Committee of OFWAT (Office of Water Regulation) that "water and sewerage charges have continued to rise at a rate above the level of inflation and above the level of increases in most customers' incomes"; whether they agree that "as a result, we are now seeing a massive increase in complaints, mainly about charges; many of these are from customers who are finding it difficult to 134WA pay their bills"; and whether they agree that these difficulties would be significantly worsened by the imposition of VAT on water.
§ The Parliamentary Under-Secretary of State, Department of the Environment (Lord Strathclyde)At the time of privatisation of the water industry in 1989 it was recognised that charges needed to rise in real terms to pay for the massive investment programme the industry has to undertake. However statutory limits on each company's water charges are set on a basis which takes account of their investment programme. Determining these limits is now the responsibility of the Director General of Water Services.
OFWAT's Annual Report 1992 shows that during 1992–93, their Customer Services Committees for England and Wales dealt with 14,795 complaints, 39 per cent. more than in the previous year. Complaints about rising prices and billing matters accounted for 62 per cent. of all complaints received.
There are no proposals to impose VAT on water and sewerage services to domestic customers.