Members of the Government do not, by convention, sign any Early Day Motions, as doing so is likely to breach the Ministerial Code's rules on collective responsibility. However,
I strongly believe that properly regulated private markets are the best way to meet the ongoing needs of water customers and the environment. I do not support re-nationalising the water industry and I am glad that the Government has no intention of doing so.
Since privatisation we have seen £140 billion of investment in water supply, thanks to which consumers are 5 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, has now scrutinised the water companies' plans to ensure they go far enough, and my ministerial colleagues will hold them to their promises. Overall, the submitted business plans for the 2019 Price Review 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. Water companies have also committed to closing all offshore financing structures.
I agree that 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. [EDM - Not signing: As a result, I hope you will understand why I will not sign EDM 1761.
Last updated July 2019