Water Bill

Geoffrey Clifton-Brown Excerpts

Monday 25th November 2013 Commons Chamber

[Dan Rogerson]

We saw bills cut for a period, but then they went back up again. If we talk to our constituents about their memories of water bills over the past few years, both in the run-up to the general election and since in the price review period presided over by the previous Government, we will hear that their experience was that bills were rising.

On the environmental benefits since privatisation, we have seen huge improvements—for example, in bathing water quality—and that is very much to be welcomed and something that we should dwell on. We have had the opportunity to consider how that progress has been made. Of course, we will see further challenging regulation on bathing water quality in future, so it is absolutely vital that the industry, along with everyone else in the community who can influence water quality, is ready for the challenge, to make it even better.

The Bill seeks to look at market reform, because we need water supplies that are resilient to future pressures, while keeping bills affordable and, indeed, minimising the impact on the environment. That is competition not for the sake of it, but to drive greater efficiencies in the water industry and encourage more innovation. The benefits to business customers are obvious: more choice, better customer service and packages tailored to their needs.

All customers, including householders, will benefit from an industry that is incentivised to look for the most efficient way to meet future demand. We know that that works in practice. Last week, I visited a housing development in Rissington in Gloucestershire, where Albion Water—a new entrant—is supplying water and sewerage services. With its innovative solutions, it can provide separate supplies of drinking water and recycled greywater to houses in the development. It can therefore compete successfully against the incumbent water company on price, while reducing daily drinking water consumption by nearly half. That is evolution, rather than a radical overhaul.

Since privatisation, the industry has been successful in bringing in investment, which has delivered huge improvements, as I have mentioned. We have a strong and stable regulatory regime and no intention of disrupting it. That is why we are working closely with the industry to develop future markets.

Market reform is understandably of great interest to hon. Members. They want to know about it from both perspectives: they are concerned in some cases that we might be going too far, and in others that we might not be going far enough. Some Members, such as my hon. Friend the Member for St Austell and Newquay (Stephen Gilbert), are keen to see competition in the residential sector, but we want to ensure that the change that we introduce is proportionate and that we proceed on a good evidence base. We can learn from the experience of Scotland, where business customers and non-domestic customers increasingly benefit from competition, so we know that the system can work. Competition in the residential sector would be a huge change, so we would have to come to anything that we wanted to do in that area at a later date. However, I take on board my hon. Friend’s comments and am reassured that he is observing that.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

At least half my constituency is supplied by Thames Water. There are consistent rumours that it is thinking about forcing all its customers on to water meters. Will the Bill make it easier for Thames Water to do that?

[Dan Rogerson]

Companies in water-stressed areas will be able to push people towards meters. Of course, new properties are customarily metered now, as a result of existing legislation. As we have heard today, there is a range of views on whether metering is desirable. Certainly, with regard to managing a scarce resource, it is desirable, but we must carefully examine the implications, such as the cost of the investment needed to install meters and the impact on bills, because there are always winners and losers. We need to look at that closely, as we move forward.