Oral Answers to Questions

Karl Turner Excerpts

Thursday 21st November 2013 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

2. What plans he has to tackle the effect of rising water bills on the cost of living.

[Karl Turner (Kingston upon Hull East) (Lab)]

7. What plans he has to tackle the effect of rising water bills on the cost of living.

[The Secretary of State for Environment, Food and Rural Affairs (Mr Owen Paterson)]

Ofwat estimates that, from 2015, pressure on bills could be reduced by £120 million to £750 million annually. I have written to water companies to call on them to consider the pressure on household incomes when making future bill decisions and, in particular, to consider whether they need to apply the full price increases next year allowed for in the 2009 price review. The Government encourage water companies to introduce social tariffs for vulnerable consumers and to reduce bad debt.

--- Later in debate ---

[Karl Turner]

Water bills have increased by almost 50% since privatisation, and yet last year, regional water companies made £1.9 billion in profits and paid £1.8 billion to their shareholders. What are the Government doing to ensure that water bills come down for the consumer?

[Mr Paterson]

I am grateful to the hon. Gentleman for his question. Unfortunately, he did not listen to my preceding answer, which was that under the watch of his Government—because Ofwat did not do its job and because, as with the banks, the last Government did not regulate properly—bills went up. We are fully conscious of the impact of bills on our hard-working constituents. We have a robust regulator in Mr Jonson Cox. It is clear from his statements and negotiations that he expects water companies to hold or reduce prices, while continuing with the enormous investment that privatisation has brought. Do not underestimate the £116 billion that has been brought into the industry, which will make it efficient and keep bills down.