§ Mr. BurgonTo ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement about the use of his powers under the Water Industry Act 1999. [108816]
§ Mr. MeacherWe have today published "Water Industry Act 1999: Delivering the Government's Objectives", which will be available in the Library of the House, or from the Department's website (www.environment.detr.gov.uk).
649WThis document is the final part of a series of publications associated with the Water Industry Act 1999. It comprises:
guidance to the Director General of Water Services on matters he is required to take into account when approving water company's annual charges schemesRegulations, protecting vulnerable groups, and prescribing conditions where metering is permitted, which were laid on 22 December.responses to consultation on both the guidance and the regulations, and regulatory appraisals for each set of regulations.The proposals in this document deliver the Government's key water charging objectives: fair and affordable water charges—particularly for vulnerable customers—and the sustainable use of water supplies and protection of the aquatic environment.
The guidance sets out the Government's approach to key water charging issues. It encourages water companies to develop charging systems that are fair and affordable, and take account of environmental considerations. Customers should expect stable and predictable bills, and charges should be transparent and closely related to services provided.
The Water Industry (Charges) (Vulnerable Groups) Regulations 1999 offer new, additional protection to customers who might face hardship affording their bills because they use large amounts of water for essential purposes and pay on a measured basis. Customers will qualify for assistance if they are in receipt of income related benefits or tax credits (Income Support, Income-based Jobseeker's Allowance, Working Families Tax Credit, Disabled Person's Tax Credit, Housing Benefit and Council Tax Benefit) and either
- (a) they have three dependent children under the age of 16; or
- (b) they have a medical condition requiring significant extra water use (these are defined as kidney failure requiring home dialysis, abdominal stomas, desquamation, weeping skin disease and incontinence).
Customers in these circumstances will be entitled to pay the average charge for the company that supplies them, rather than their actual measured charge. This represents a significant new step to tackle water poverty.
The Water Industry Act 1999 restricts water companies' powers to impose meters on customers. However, the Government accept that metering may be acceptable in some circumstances, such as when a customer is using a large volume of water for discretionary purposes. The Water Industry (Prescribed Conditions) Regulations 1999 therefore set out conditions when companies will continue to be permitted to require customers to have water meters. These include circumstances such as automatic garden watering, automatic replenishment of a large pond or swimming pool, very large baths, high consumption showers and certain types of water softening unit. These Regulations also give the Secretary of State power to permit metering in designated areas of water scarcity. No such areas are designated at present. Any application for designation would need to be considered by the Secretary of State, consulting the Director General of Water Services, the Environment Agency and bodies representing customers in the relevant area.