§ Mr. JenkinsTo ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the impact of competition in the water industry. [31509]
§ Mr. MeacherExisting possibilities for competition in the water industry have led to significant improvements in the efficiency of statutory undertakers and benefits for customers. Undertakers already contract out a number of their services and activities on a competitive basis. They compete with one another to offer large industrial users water management services and customers using more than 100 mega litres of water per year are also able to take advantage of inset appointments. The regulatory regime also provides for a system of comparative competition which enables the Director General of Water Services to compare the efficiency of statutory undertakers when setting price limits. The Department has been examining the possibilities for extending the scope for competition in the water industry, including consideration of the impact this would have on different customer groups. DEFRA will be publishing a consultation paper, setting out the issues and proposals later this year.