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| | Water resources |
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What is our role in maintaining water supplies?
Our role is to enable efficient water companies to finance the delivery of reliable water supplies to their customers. We set price limits every five years that reflect the investment each company needs to make to improve the security of its supply to its customers while keeping costs down.
We last set price limits in 2004. We assumed that around £3.1 billion of investment would be needed over the next five years to improve security of supply to existing and future customers. Most of the investment is to meet the changing patterns of demand, rather than overall growth in demand which is stable. We monitor each company's progress in delivering improvements. This includes achieving an appropriate security of supply and reaching or maintaining a cost-effective level of leakage. We also monitor each company's use of water efficiency measures.
The companies provide the information we need each year in their June return submissions. We check that the investment proposals in their business plans are consistent with their water resource plans. We reported our most recent results in Service and delivery - performance of the water companies in England and Wales 2007-08 report and supporting information on:
The security of supply index
Calculating and banding the security of supply index scores
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