Synopsis: |
In this report, "Ofwat Price Review 2009 (HC 554-I)", the Committee calls on the Department for Environment, Food and Rural Affairs (Defra) to review Ofwat's entire remit so that the regulatory regime will keep pace with the changes set to follow from greater competition and the challenge posed by scarcer water resources. On the matter of surface water drainage, Ofwat should have intervened to ensure a more measured set price: increases for this service were levied on sports clubs, churches and voluntary organisations by water companies in recent months. Ofwat and the Government should explore how the costs of highway drainage - currently born by water customers - could be shared with local taxpayers who benefit from the service. Uncertainties created by the Cave and Walker reviews (both of which reported during the current Price Review), along with changes to the regulatory regime proposed in the draft Flood and Water Management Bill, may have hampered the ability of water companies to raise money on the capital markets in a manner likely to push up customer bills.Warning of water scarcity in the South and East of England, the Committee calls for the creation of a 'water efficiency obligation' to ensure the regulatory regime emphasises the need to preserve resources and to reward customers who install efficiency measures. Other recommendations are made on the uneven regional impacts of investment in water infrastructure, the impacts of climate change, and the issue of transparency, from the price review process itself to how well Ofwat currently requires companies to demonstrate they undertake effective consultation with consumers during business planning. |