10/02/2012

Future direction in the water industry

Photo: Southern Water's new Brighton treatment works taking shape
Speaking at the British Water House of Lords reception this week, Lord Taylor Parliamentary under Secretary of State for Defra outlined the Government’s view of the priorities in the water sector. Some old favourites came up like the emphasis on innovation and a reminder of the TSB sponsored competition to promote Innovation due to be launched in the Spring.

Catchment management and the need to tackle unsustainable water extraction is a clear focus of Defra attention. It is an area where real progress can be made givern sufficient focus. Defra will also shortly be issuing guidance to Ofwat on how it would like to see regulation develop.

Last week the Government launched a bill to enable it to reduce the cost of water for South West Water’s customers by £50 year – as promised in the last budget. The bill also allows the Government to provide financial support if the cost of the Thames Tunnel escalates.

The Government’s view is that a lot of the proposals outlined in the water white paper do not need legislation, however for those that do a Water Bill will be announced in the Queen’s speech. 

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