§ Mrs. Helen JacksonTo ask the Secretary of State for the Environment what estimate he has made of the costs in each of the next five years to the water companies of the proposed revision to European Union directives on(a) bathing water and (b) drinking water; and if he will take steps to ensure that these costs are not passed on to customers. [10202]
§ Mr. Clappison[holding answer 13 January 1997]: The capital cost of implementing the European Commission's proposals for a revision of the bathing water and drinking water directives in the UK has been estimated to be in the range of £1.6 billion to £4.2 billion and £2.2 billion to £3.5 billion respectively, with the majority of the expenditure in the case of the proposed drinking water directive being spread over 15 years from its adoption. Estimates for the next five years would depend on the precise terms of what is adopted and when.
The effect of new quality obligations on customers' bills is a matter for the director general of Water Services in regulating charges. Under section 2 (2) (b) of the Water Industry Act 1991 the director general has a duty to ensure that companies can finance their functions. When new quality obligations are placed on companies, the director general will need to make sufficient allowance in price limits for companies to comply.