§ Mr. PawseyTo ask the Secretary of State for the Environment when he last met the heads of the regional water companies to discuss the basis for water price structure; and if he will make a statement.
§ Mr. YeoMy right hon. Friend's predecessors have from time to time met chairmen of the water companies. The basis for restrictions on water charges is set out in the water companies' instruments of appointment, compendia of which are available in the Library. Under the Water Industry Act 1991, the Director General of Water Services has the duty to set limits to the prices companies may charge. The director general has published a number of consultation papers concerning his approach to setting price limits at the first full review in 1994 which will take effect from 1 April 1995. Under section 2 of the Water Industry Act 1991, the director general must enable companies to obtain the funds to finance their duties while protecting the interests of their customers.