Water Companies

Environment Food and Rural Affairs written question – answered on 18th October 2006.

Alert me about debates like this

Photo of Lyn Brown Lyn Brown Labour, West Ham

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment he has made of the speed at which water companies have implemented their investment plans efficiently after price limits were set in 2004; and if he will make a statement.

Photo of Ian Pearson Ian Pearson Minister of State (Climate Change and the Environment), Department for Environment, Food and Rural Affairs

Ofwat is the economic regulator for the water and sewerage industry in England and Wales. In December 2004 it set price limits for the period 2005-10. In setting these price limits, Ofwat assumed that the industry would spend £18.3 billion (in today's prices) over the period 2005-10 on its capital investment programme.

Although companies have generally delivered the environmental outputs that were expected for 2005-06, levels of investment across the full range of companies' activities have fallen short of Ofwat's assumptions. Their total capital investment for 2005-06 was £3.4 billion, compared with the £4.3billion that Ofwat expected. Ofwat's detailed 2005-06 report, 'Financial performance and expenditure of the water companies in England and Wales', has been placed in the Library of the House.

The regulators will continue to monitor how the companies' perform, focusing on making sure that full investment programmes are delivered for the period up to 2010.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.