Draft Water Bill

Book excerpt: The Draft Water Bill sets out proposed new legislation, much of which would extend competition in the water industry. The MPs are concerned that the Draft Bill contains only a broad framework and leaves too much of the important detail to be decided by the regulator, Ofwat, or to be introduced through secondary legislation that receives less parliamentary scrutiny. In welcoming the opportunities for greater competition within the retail water sector (providing billing services) the MPs ask Government to get on with implementing changes that would reduce flooding - many of which were recommended nearly five years ago. The MPs highlight the importance of managing our water resources sustainably and efficiently. They recommend that encouraging sustainable development be elevated to a primary duty of the regulator and that the Government brings forward legislation to enable the abstraction regime to be reformed by 2022. In addition they recommend implementation of existing provisions on bad debt and encouraging greater use of water meters, both of which would lower customers' water bills. However, the report concludes that the Government needs to undertake further work before embarking on "upstream" competition, which would enable companies to compete in the supply of water.