§ Mr. JenkinsTo ask the Secretary of State for Environment, Food and Rural Affairs (1) what the estimated output is of the smallest non-domestic water supply source which would produce a financially viable return; [76936]
(2) what assessment has been carried out of the smallest non-domestic water supply source which might produce a financially viable return from customers. [76937]
§ Mr. MorleyThe Government published a consultation paper, on July 31; "Extending Opportunities for Competition in the Water Industry in England and Wales". This proposed competition only in the non-household sector, with an eligibility threshold of a minimum of 50 Megalitres (Ml) a year. The consultation period closed on 1 October and we are now considering responses.
In preparing the proposals. assessment was made of the broad cost breakdown between the main elements of the supply chain, the likely scope for making savings on these, and the ranges of charges paid by users. Experience shows that the market will determine financial viability in a competitive environment.
These issues will be taken into consideration as we balance the need to create opportunities for competition whilst continuing to secure the Government's wider objectives for the water industry, which include protecting public health, the environment, social and economic goals, and safeguarding services for household customers.