HC Deb 05 July 1999 vol 334 cc379-80W
Mr. Jim Cunningham

To ask the Secretary of State for the Environment, Transport and the Regions what progress the Government have made in producing guidelines for water companies on alternative payment arrangements to water metering. [89205]

Mr. Meale

We are considering with water companies and other groups with an interest in water charging how any alternative to the present system of unmeasured charging, such as the use of Council Tax bands, could be designed to provide for fair charges and to avoid significant losses for some groups.

There is no statutory bar on water companies introducing alternative unmeasured charging systems. Under the Water Industry Act 1999, companies will be obliged to include in charges schemes details of the basis on which they wish to charge for water and sewerage services to homes. Schemes will be subject to approval by the Director General of Water Services. My right hon. Friend the Secretary of State will issue guidance to the Director General on the approval of schemes. We shall be consulting on draft guidance shortly.

Mr. Jim Cunningham

To ask the Secretary of State for the Environment, Transport and the Regions what plans the Government have to review water rates, with particular reference to help for pensioners. [89206]

Mr. Meale

The Director General of Water Services' periodic review of prices for the period 2000–05 may be expected to offer reductions in average water and sewerage bills in April 2000.

The Water Industry Act 1999 will, for the first time, require water companies to give householders a measure of choice in the method by which they are charged for water. Many pensioners, if they make comparatively small demands on the water system, will be able to benefit from the new statutory right to be charged on a measured basis free of initial cost. We propose to make regulations under the Act to provide protection for households who are particularly vulnerable to high measured charges because of unavoidable high water use, such as those with certain medical conditions.

Mr. Jim Cunningham

To ask the Secretary of State for the Environment, Transport and the Regions if he will take steps to ensure long-term reductions in water charges to domestic consumers. [89701]

Mr. Meale

Under the Water Industry Act 1991 the regulation of water and sewerage undertakers' price limits is for the Director General of Water Services. Changes in average charges for water and sewerage services must remain within limits set by the Director General for each company for each year. The Director General is currently conducting his periodic review of prices for the period 2000 to 2005. The Government have given guidance to the Director General on the environmental and water quality improvements to be delivered by 2005. We believe that these can be secured while offering reductions in average water and sewerage bills. The Director General expects to announce draft price limits for each undertaker later this month.