Water: National Grid

Lord Wigley Excerpts

Wednesday 28th March 2012 Lords Chamber

[Lord Taylor of Holbeach]

As my noble friend is aware, much has already been done by water companies to improve interconnectivity. My noble friend asked about a plan. We are encouraging water companies to include provision for better interconnectivity in the next price review round, which is due to complete in 2014. This is potentially much more cost-effective than creating a national grid and it will help to address the problem of imbalances in water availability across the country. We need Ofwat to get the incentives right so that water trading is economically attractive for water companies.

[Lord Wigley]

My Lords, I welcome the statement made by the noble Lord a few hours ago in this Chamber, when he indicated that any proposals to secure additional water supplies from Wales would go ahead only with the agreement of the National Assembly as water is a devolved matter. That being so, will he also confirm that there will be a Barnett consequential for the expenditure undertaken as a result of the Bill passed last night that would be relevant to Wales?