Water Companies: Customer Bills

Lord Kirkhope of Harrogate Excerpts

Tuesday 23rd May 2023 Lords Chamber

[Lord Benyon (Con)]

I fear the noble Lord and I are working off different facts. Capital investment by water companies is 84% higher than it was before the sector was privatised. I have seen independently assessed evidence that water bills would have been higher if we had not privatised the industry. Some £190 billion has been spent by water companies, paid for out of customers’ bills, for investment in water. My noble friend Lady Vere said earlier that nationalisation was a soundbite, not a solution. I could not agree more.

[Lord Kirkhope of Harrogate (Con)]

My Lords, I refer to my interests in the register. I want to ask my noble a bit more about Ofwat. The Government are getting criticised a lot in relation to water bills, but am I not right in saying that the regulator, looking at this matter in an independent fashion, has got pretty well the final say on who has to find the money for the developments that we are talking about?

[Lord Benyon (Con)]

My noble friend is right to a point. The Government give direction to Ofwat and have given it very clear direction in terms of resolving issues in relation to sewage overflows into rivers. We have a system where, like all utilities, it is extremely attractive, not least to pension companies—which are the recipients of dividend payments—that invest in our water industry. Having that balance between making sure we are being fair to bill payers, and how much they pay, and getting that investment is absolutely crucial. That is why we work regularly with Ofwat to achieve it.