The Government has today published the long-awaited Water Bill which sets out water industry reform and clauses on flood insurance.
The proposals will reform the water industry to make it “fit for the 21st century”, the Government said, and will create new laws to increase drought resilience and give business customers the choice of who supplies their water.
Competition in the water market will allow all business, charities and public sector customers to switch supplier. The Government said the Bill will benefit the economy by £2 billion over the next 30 years.
Environment Secretary Owen Paterson said:
“We need to address growing pressure on our water resources. These reforms will make the sector more resilient and help us build a stronger economy.
“Creating a modern customer-focused water industry is crucial. We have listened to businesses who want more choice, and our new measures will give them the freedom to switch supplier and find a more competitive deal.”
Through the Water Bill, the government is introducing new changes that will supposedly place water supply resilience at the heart of decision making in the water sector and help join up the national water network, by making it easier for water companies to buy and sell water from each other.
Competition will be increased by encouraging new entrants to the market who can offer alternative sources of water or innovative ways of treating sewerage.
Water UK Chief Executive Pamela Taylor said:
“Increasing resilience is essential if we are to continue to provide our customers the services they depend on. Water companies will continue to work with all stakeholders to deliver the government’s goal of a sector that is more resilient, supports long-term growth and jobs in the UK and gives businesses, charities and public sector customers a choice of supplier.”
Welcoming the publication of the Water Bill Regina Finn, Ofwat's chief executive, said:
“We welcome the introduction of the Water Bill to Parliament. The measures that Government is proposing are good news for customers, the environment and the economy. And we are changing the way we regulate to complement and support the Bill. Together, our changes and the Bill will boost the UK economy by over £3 billion.
“The Bill will mean better services for customers, more efficient use of water resources and greater resilience in the face of drought and population growth.”
Earlier today, Defra Minister Richard Benyon wrote a statement concerning new proposals on flood insurance and the Water Bill's role.
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