WATER SERVICES
REGULATION AUTHORITY News Release (10/08) issued by The Government
News Network on 1 April 2008
Ofwat today
published its new strategy which sets out how it plans to develop
economic regulation of the water and sewerage sectors in England
and Wales.
Ofwat Chairman Philip Fletcher said:
"The water and sewerage sectors face tough new challenges in
serving water consumers. Each company must cater for changing
populations and rising consumer expectations while also mitigating
and adapting to the effects of climate change.
"We need to change how we regulate to help companies meet
these new challenges. Our strategy is the first step in this direction."
Water and sewerage companies have made huge improvements in
response to regulatory challenges. Around £70 billion will have
been invested by 2010, and the companies have delivered better
standards of service and improvements to the environment and
drinking water quality.
Philip Fletcher said:
"But to meet the new challenges we all need to think and
plan long-term. The strategy we have published today sets out our
long-term priorities, and the programme of work we plan to deliver
in the next three years to protect consumers, promote value and
safeguard the future.
"Innovation and creativity will be needed, and in other
sectors these are driven by competition. We have committed
ourselves to introducing competition progressively in the water
and sewerage sector where it will benefit consumers.
"But where competition is not possible or strong enough to
protect consumers, we will continue to regulate effectively
monopoly service providers to deliver high-standards of service."
A key part of Ofwat's work over the next three years will be
the price review. Ofwat recently published its final approach to
setting price limits in 2009. The approach will continue the
rigorous challenge that Ofwat has always brought to its scrutiny
of companies' business plans to make sure they deliver value
for money for consumers.
Notes to Editors:
1. The Water Services Regulation Authority (Ofwat) is the
economic regulator of water and sewerage companies in England and
Wales. It exercises its powers in a way that it judges will
protect the interests of consumers, promote value and safeguard
future water and sewerage services by allowing efficient companies
to carry out their functions properly, and finance them.
2. The strategy document, 'Ofwat's strategy - taking a
forward look', is available on the Ofwat website, http://www.ofwat.gov.uk
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