Water Bills

Baroness McIntosh of Pickering Excerpts

Thursday 21st November 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My noble friend points out some of the disgraceful behaviour we have seen from water companies in recent years. We expect companies to invest their own money going forward. However, we recognise that new investment means that customer bills are likely to rise. It is Ofwat’s responsibility to independently scrutinise water company plans, ensuring that the prices companies charge their customers are fair and proportionate. Vital infrastructure investment funding is ring-fenced and can be spent only on upgrades benefiting customers and the environment. Ofwat must ensure that when money for investment is not spent, companies refund customers, with money never allowed to be diverted for bonuses, dividends or salary increases.

[Baroness McIntosh of Pickering (Con)]

My Lords, can the Minister assure me on the recommendation in the Frontier Economics report of 2021, commissioned by Ofwat, to stop developers passing on the cost of incremental upgrades and treatment works for major new developments? The fact that the recommendation has not been introduced is bloating customer bills, which is unacceptable. Will she ensure that the recommendation by Ofwat is introduced to reduce customer bills and make developers pay for connections for major new developments and the upgrade of treatment works?