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UK Government’s plan to increase water competition “unlikely to work in Wales”

Business, News | Richard Gurner | Published: 17:00, Wednesday August 14th, 2013.

UK Government plans to increase water competition are unlikely to work in Wales according to the National Assembly of Wales’ Environment and Sustainability Committee.

The Water Bill, if passed, would allow non-household premises such as businesses, charities and other organisations, to choose their own water and sewerage supplier, similar to the way people can choose different gas and electricity utility companies.

The Bill is currently making its way through the House of Commons but the Committee was unconvinced that extending the legislation to Wales would benefit customers.

The committee highlighted the business model of D?r Cymru, Wales’s largest water supplier, as one reason why such a law would be ineffective. D?r Cymru operates as a not-for-dividend company with funds invested back into its water supply network.

The Committee noted and agreed with the Welsh Government’s assertion that it had no plans to introduce similar legislation in Wales.

“The cost of introducing the changes proposed in the UK Government’s Water Bill are significant and, given the not-for-dividend model employed by D?r Cymru, the Committee is not convinced such changes would provide any increased benefits to customers or quality of service in Wales,” said Lord Dafydd Elis-Thomas AM, Chair of the Environment and Sustainability Committee.

“The Committee was also concerned that any potential discounts or savings offered to non-household customers could result in increased bills for households to make up the difference.

“Given that many households in Wales are struggling to pay their existing bills this is something we believe should be avoided.”

2 thoughts on “UK Government’s plan to increase water competition “unlikely to work in Wales””

  1. Cllr. Richard Willia says:
    Wednesday, August 14, 2013 at 18:13

    This idea is a non-starter. Re-nationalise the lot, our water bills were lower when water and sewage were in public ownership. I am generally in favour of private enterprise but strategic resources are better when state run.

    Don't believe it? Well try French railways and compare them with our rail service.

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  2. Dean says:
    Wednesday, August 14, 2013 at 18:14

    I may shock some here being a monetarist, capitalist and centre-right but I think Welsh Water should be nationalised but run by a management team in a similar way it is now. There wouldn't be a water minister or anything. There would be large scale public investment in improving and upgrading the system used for transporting water around Wales and desalination plants built on the Welsh coast to always meet demand for Water in Wales. Any leftovers (Welsh residents come fist) can be sold to England for profit.

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