15 NOV 2018
Thank you very much for taking the time to email me about the water industry and EDM number 1761.
I realise you would like me to sign EDM 1761, however like many MPs I do not sign any EDMs no matter how worthy the cause. This is because EDMs now cost a huge amount per year to administer and have no chance of changing the Law. They are in effect petitions which only MPs can sign. They have also been superseded by online petitions which can be on any issue for which the Government or Parliament is responsible and any which receive 10,000 signatures will receive a response from the Government. Those petitions which reach 100,000 signatures will almost always be debated in Parliament – unless it is an issue which has recently been debated. There are also concerns that EDMs may give a false impression that action is being taken.
Nonetheless, I hope the following information on this topic from the Department for Environment, Food and Rural Affairs is reassuring:
Properly regulated private markets are the best way to meet the ongoing needs of water customers and the environment.
Since privatisation we have seen £140 billion of investment in water supply, thanks to which consumers are five times less likely to suffer from interruptions to their supply. Ministers have, however, been putting pressure on the water companies to do more to enhance the environment and provide customers with the reliable and resilient service they expect. As a result, water companies now plan to invest £50 billion on improving services, while reducing customer bills on average by 4 per cent in real terms by 2025.
The industry regulator, Ofwat, will scrutinise the water companies' plans to ensure they go far enough, and my ministerial colleagues will hold them to their promises. They submitted draft business plans for the 2019 Price Review in September, and these give an early indication that water companies are responding positively to the Secretary of State's challenge. The industry is raising its game on several fronts, such as cutting prices, investing more and paying lower dividends to shareholders.
Reforming industry governance and empowering the regulator is the best way to secure a water industry that works for everyone, including both customers and the environment.
Back to all posts