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Tuesday, 30 November 1999 00:00

Water watchdog wants fines to benefit consumers

The Consumer Council for Water is calling on the Government and Ofwat to make sure that money arising from fines on water companies is used for the benefit of consumers.

Ofwat last week ordered water and sewerage company, United Utilities, to pay an £8.5 million fine for breaches of regulations relating to trading arrangements with associate companies. Under current legislation, this penalty will be paid to the Treasury.

However, the Consumer Council for Water is pressing for future fines, where appropriate, to be given back to consumers.

Yve Buckland, Chair of the National Consumer Council for Water, said: “In monopoly businesses, it’s likely that results of breaches of regulations benefit shareholders and disadvantage consumers.  Therefore consumers need to benefit from Ofwat’s action.

“We want to put a marker down to say that, in most instances, where a water company is fined, the money should go back to consumers in the most appropriate way for the circumstances and the region - and not go to the Treasury.”

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