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PN 12/04 | 11 March 2004 |
Ofwat welcomes ministerial clarity on quality obligations |
Responding to the publication of the Principal Guidance, Director General of Water Services Philip Fletcher said:
"Ministers in England and Wales have now issued their guidance on the quality programmes that water companies will need to take into account. The Environment Agency and the Drinking Water Inspectorate will translate these policy areas into a list of schemes and consents that the companies will cost in their final business plans.
"The guidance comes more than a month later than I had expected. We are writing to the companies with the aim of minimising any resulting delays to the timetable for the price review. Subject to this, I expect to confirm the timetable very shortly.
"The improvements to the environment and drinking water quality will have to be paid for, but it is too early to say what the outcome will be for customers' bills. It is my duty to ensure that efficient companies can finance these obligations. Given the cost pressures faced by the companies, customers in general should expect bill increases."
Notes to Editors:
1. The Director General of Water Services is the economic regulator of the water and sewerage companies in England and Wales. He exercises his powers in a way that he judges will allow them to carry out their functions properly, and finance them. WaterVoice represents customers' interests.
2. Ministers' Principal Guidance was originally due in January. Ofwat expects to receive final guidance in September when Ministers will fine-tune their decisions on the required quality programmes in the light of the draft determinations.
3. Ofwat has received today guidance from the Secretary of State for Environment, Food and Rural Affairs, and from the Welsh Assembly Government Minister for Environment, Planning and Countryside.
MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442
Out of hours enquiries to pager: 08700 555 500 water 503/509. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk
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