§ Mr. BrakeTo ask the Secretary of State for the Environment, Transport and the Regions if he will list the statutory duties of the Director General of Water Services which relate to the periodic review of water pricing. [10650]
§ Angela EagleCondition B of the instrument of appointment of the water undertakers, made under section 6 of the Water Industry Act 1991, sets out the formula for calculating price limits. It provides for a review of all price limits by the director at 10-yearly intervals, or after five years at the request of the companies of the director.
The Director General of Water Services, under section 2 of the Water Industry Act 1991, must exercise and perform his powers and duties in a manner best calculated to ensure that water and sewerage companies can carry out and finance their functions under that Act, in particular by securing a reasonable rate of return on their capital. Subject to that, he has to protect customers and promote economy and efficiency.
Under section 3 of the Act, the director general, so far as is consistent with his duties under'section 2, has general environmental and recreational duties, including a duty to further the conservation and enhancement of natural beauty and the conservation of flora, fauna and geological or physiographical features of special interest and a duty to have regard to the preservation of public amenities such as freedom of access to the countryside and seaside.
My right hon. Friend, the President of the Board of Trade, announced an inter-departmental review of the regulation of the utility industries on 30 June, Official Report, columns 20–21. The Government's objective for the review is to set a long-term stable framework for utility regulation which is seen as fair by all the interest groups involved, particularly by consumers