Written question asked by Andrew George (Liberal Democrat) on Wednesday, 19 April 2006, in the House of Commons. It was due for an answer on Monday, 24 April 2006. It was answered by Elliot Morley (Labour) on Thursday, 27 April 2006 on behalf of the Department for Environment, Food and Rural Affairs.

Water Privatisation

Question: (2) what (a) amount and (b) proportion of total income of each water company was paid (i) to service debt and borrowing and (ii) in dividend payments to shareholders in each year since privatisation for which records are available.

Answer: Ofwat is the economic regulator of the water and sewerage companies in England and Wales. It sets price limits for each water company at price reviews. These are the maximum by which average charges may change each year. Ofwat sets price limits that allow each company to finance and fulfil its functions.Dividends declared by the regulated companies are paid to their parent companies and are in their regulatory accounts. The companies are also required by Ofwat to provide a comprehensive explanation of the basis of the dividend. The parent companies report in their statutory accounts what is actually paid to shareholders.Companies report to Ofwat each year in their profit and loss accounts the level of dividends and interest payments to service debt and borrowing. I will place copies in the House Library.

Secondary information

Type: Written question
Reference: 65103; 445 c1240W;445 c1240W
Session: 2005-06
Related items: Deposited Paper DEP 06/882
Tuesday, 2 May 2006
Deposited papers
House of Commons
Subjects: Finance Water companies
Link: View this Written question on www.publications.parliament.uk