WATER SERVICES
REGULATION AUTHORITY News Release (14/07) issued by The Government
News Network on 10 May 2007
Consumers expect
to receive high quality sustainable water services at a fair
price. Ofwat protects consumers by keeping prices down, driving
improved service and where companies fail to deliver taking
effective action.
Without Ofwat's work, the average water bill would be £90
per annum higher today than it is. In the last decade leakage has
gone down by a third. Where companies have not delivered, we have
taken action to protect consumers.
The action we took against Thames Water for failing to meet its
leakage target last year was the best outcome for consumers. We
agreed a legally binding undertaking that committed the company to
invest, at shareholders expense, an extra £150 million - more than
twice the maximum fine we could have imposed.
We agree with the PAC that metering is the fairest way of
charging for water. Metering encourages consumers to think about
the water they use and to save water and money.
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 allow
companies to carry out their functions properly, and finance them.
Its duties include protecting the interests of consumers, wherever
appropriate by promoting effective competition.
2. The PAC report, 'Ofwat: Meeting the demand for
water', was issued under an embargo of 00.01hrs, 10 May.
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