UK Government’s plan to increase water competition unlikely to work in Wales – says National Assembly Committee
14 August 2013
A plan by the UK Government to increase competition in the water supply sector in England is unlikely to work in Wales, according to a National Assembly for Wales Committee.
The Environment and Sustainability Committee has concluded its inquiry into the potential implications of the Water Bill which, if passed, would allow non-household premises such as businesses, charities and other organisations, to choose their own water and sewerage supplier, similar to the way people can choose different gas and electricity utility companies.
The Bill is currently making its way through the House of Commons but the Committee was unconvinced that extending the legislation to Wales would result in the increased benefits for customers it is designed to encourage. Organisations which contributed to the inquiry told the Committee they would only consider switching supplier if it resulted in a substantial saving in water costs.
The Committee highlighted the business model of Dwr Cymru, Wales’s largest water supplier, as one reason why such a law would be ineffective. Dwr Cymru operates as a not-for-dividend company with funds invested back into its water supply network.
The Committee noted and agreed with the Welsh Government’s assertion that it had no plans to introduce similar legislation in Wales.
“The cost of introducing the changes proposed in the UK Government’s Water Bill are significant and, given the not-for-dividend model employed by Dwr Cymru, the Committee is not convinced such changes would provide any increased benefits to customers or quality of service in Wales,” said Lord Dafydd Elis-Thomas AM, Chair of the Environment and Sustainability Committee.
“The Committee was also concerned that any potential discounts or savings offered to non-household customers could result in increased bills for households to make up the difference.
“Given that many households in Wales are struggling to pay their existing bills this is something we believe should be avoided.”