Proceeding contribution from Lord Benyon (Conservative) in the House of Commons on Wednesday, 9 March 2011. It occurred during Adjournment debate on Water and Sewerage Charges (South West Water).
Water and Sewerage Charges (South West Water)
My understanding is that that is the figure over the piece. However, I am happy to look into that and give my hon. Friend an absolutely clear and unequivocal answer, because it is important that we know that figure. In my hon. Friend's earlier remarks, I think she raised the point about why we use the retail prices index rather than the consumer prices index. [Interruption.] Sorry it was not her; it was my hon. Friend the Member for Torbay. Bills have been tied to inflation since privatisation because, when inflation is higher, water companies' costs increase. As is the case with other regulators, Ofwat uses RPI. Although RPI was higher than CPI this year, it was actually lower than CPI when last year's bills were calculated, so average bills that year were lower. We can argue about percentage points, but that is an important factor. Let us take that matter forward in our consultation, which I will come to in a moment. I am acutely aware that nobody wants to see higher bills, particularly in these tough economic times. However, we should not lose sight of the fact that the money raised will pay for £159 million of investment in the region during the next financial year, which will benefit customers. I know that that sounds trite, and I am not diminishing the effect of the increase, but we must recognise that there are also benefits, including £14 million to improve tap water quality, £10 million to repair crumbling sewers and £28 million to further reduce pollution incidents.
Secondary information
- Type
- Proceeding contribution
- Reference
- 524 c261-2WH
- Session
- 2010-12
- Chamber / Committee
- Westminster Hall
- Subjects
- Consumers Billing Ofwat Protection Meters Water charges Sewers South West Water South West Charging for Household Water and Sewerage Services Independent Review Social tariffs
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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