§ Mr. CoakerTo ask the Secretary of State for the Environment, Transport and the Regions what progress is being made in respect of the future regulation of water prices; and if he will make a statement. [79102]
§ Mr. MealeOn 1 March 1999 Ministers announced their guidance to the Director General of Water Services on the programmes of investment in environmental and water quality improvements by water and sewerage companies that he should assume in setting their price limits for the period 2000–01 to 2004–05. While the setting of price limits is the responsibility of the Director, the required investment programme of some £8 billion of quality improvements over five years should allow room for significant price reductions in 2000–01. The Director will announce his provisional determinations of price limits in July.
Under proposals in the Water Industry Bill, currently before Parliament, household water customers would gain increased choice in the method of calculation of their individual bills. The Bill also proposes new powers for the Director and Ministers to regulate the provisions of companies' charges schemes.