Ofwat

House of Lords written statement – made at on 7 March 2013.

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Photo of Lord de Mauley Lord de Mauley The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

My Honourable Friend the Parliamentary Under-Secretary for Natural Environment and Fisheries (Richard Benyon) has today made the following Statement.

An urgent cash advance of £1,500,000 (one and a half million pounds) is required to fund Ofwat's immediate operating cost commitments and prevent default to contractual suppliers while we await Royal Assent of Supplementary Estimates.

Ofwat is heavily committed currently to a range of major projects that rely on the expert input of a number of specialist suppliers. Without this input Ofwat would be unable to regulate effectively and protect the interests of 52 million consumers in England and Wales. Ofwat contract with a large number of SME's and therefore it is in the public interest that we make payment promptly within agreed contractual terms.

Parliamentary approval for additional resources of £3,000,000 was sought in a Supplementary Estimate for 2012-13 on the 13 February for the Water Services Regulation Authority. Pending that approval, urgent expenditure estimated at £1,500,000 will be met by repayable cash advances from the Contingencies Fund.

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