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ARTICLE · 02 NOVEMBER 2010

Defra Seeks Views on Scope of Water Reforms

Defra (the Department for Environment, Food and Rural Affairs) is developing its plans for the future reform of the water industry in England and Wales and has committed to publish a Water White Paper by summer 2011.

United KingdomAntitrust/Competition Law
SJ Berwin'S EU & Competition Team
SJ Berwin'S EU & Competition Team

Defra (the Department for Environment, Food and Rural Affairs) is developing its plans for the future reform of the water industry in England and Wales and has committed to publish a Water White Paper by summer 2011.  Ahead of this it has set up a short online survey in order to gather views from interested parties.  Stakeholders are asked for their views on:

  • what they see as the main issues relating to water and how they should be addressed;
  • what would incentivize them to conserve water;
  • what they would change about the current way of paying for water (such as opting to use a water meter or being able to change supplier); and
  • what they would choose as the priority action for either the government or water companies.

The online survey runs until 30 November 2010.

The forthcoming Water White Paper will focus on how to meet future challenges and is intended to address issues such as:

  • reducing regulation in the water and waste water sector;
  • increasing choice and competitive opportunities;
  • driving innovation and improving customer service and value; and
  • maintaining water supplies for the future and ensuring fair and affordable water charges.

A key aspect will be to set out the government's long awaited conclusions on Martin Cave's review of competition and innovation in water markets (which amongst other things recommends materially reforming the current special, and more restrictive, water merger regime).  Although it is not yet clear to what extent the proposals will be implemented, the government has stated that the Cave Review is considered integral to this reform process and may introduce new opportunities, for example by enabling large businesses and other customers to switch their water supplier in order to seek better prices and customer service.

The Water White Paper will also take account of the conclusions of the ongoing review of Ofwat to ensure that it is fit for future challenges facing the water industry (see Community Week issue 486).

To view Community Week, Issue 495 – 29 October 2010 in full, click here.

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