§ Mr. BurgonTo ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement on the progress of the Government's review of competition in the water industry in England and Wales. [156760]
§ Mr. MeacherFollowing further work on the options for extending competition in the water industry in England and Wales, the Government have decided to boost the opportunities for competition. Our proposals will bring customers the prospect of more choice, keener prices and better services. We propose to license new entrants into the market for production and retail activities, while the incumbent water companies will remain vertically integrated statutory undertakers, retaining their important strategic water resource and environmental duties. Companies will be given clearer rights to enter the water market, providing the opportunity for innovation and efficiency gains to give customers better deals. We will continue to ensure that public health, the natural environment, and the high quality of drinking water is safeguarded, and that water services remain affordable for customers. We will publish a consultation paper on the proposed legislative and regulatory framework in the summer.