Water Act gains Royal Assent
15 May 2014 02:42 PM
New Act will provide
improved choice and affordable flood insurance.
A new law will mean businesses,
charities and public sector customers have the freedom to switch water supplier
from 2017. It will also ensure affordable flood insurance for hundreds of
thousands of households from 2015.
The new Water Act, introduced
last night, will open up competition in the water market, bringing real
benefits to businesses and the economy. Together with the other water market
reforms set out in the Act, this will grow the economy by £2 billion over
the next 30 years.
The Act will:
- address growing pressure on
water resources by making our supply more resilient through new companies
offering new sources of water
- help join up the national water
network, by making it easier for water companies to buy and sell water from
each other
- increase competition and
encourage new entrants to the market who can offer alternative sources of water
or innovative ways of treating sewerage, and
- ensure that hundreds of
thousands of households in the highest flood risk areas will be able to access
affordable flood insurance from 2015.
Environment Secretary Owen
Paterson said:
We are building a stronger, more
competitive economy and our new reforms to the water market will continue to
support that long-term plan.
This new law gives businesses
the freedom to switch supplier. This will bring real competition into the
market, so businesses can seek out the most competitive deal and save
money.
Hundreds of thousands of
households in the highest flood risk areas will also be able to access
affordable flood insurance from 2015.
It will see flood insurance
premiums limited and linked to council tax bands. A new industry-backed levy
will enable insurance companies to offer cover to those most at risk of
flooding.
Owen Paterson
added:
This winter’s exceptional
weather has had devastating effects on communities and we want to make sure
those most at risk are protected both now and in the future.
This legislation is a huge step
forward towards our goal to ensure affordable flood insurance for those
households most at risk.
You can read more about the
Water Act here