Post by celticwitch on May 10, 2007 12:52:47 GMT
The water watchdog Ofwat must toughen up
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This is something that really needs to be dealt with water conservation will become a big issue soon.[/color]LONDON (Reuters) -
The water watchdog Ofwat must toughen up its "limp attitude" to regulation by imposing the maximum fine on companies that fail to fix leaky pipes, an influential group of MPs said on Thursday.
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In a critical report, the Public Accounts Committee said Ofwat's decision not to fine Thames Water for missing leakage targets for six years running must not be repeated.
"Ofwat has been passive in its regulation of the water industry," said committee Chairman Edward Leigh. "At the same time it has paid little heed to the interests of water users.
"Thames missed its annual leakage targets for six years in a row without so much as a slap on the wrist.
"In future, such a wanton waste of water by a company must be rewarded with the maximum possible fine."
After avoiding a fine last July, Thames Water agreed to replace hundreds of miles of old pipes.
Ofwat must also push harder for more water meters, to give people a financial incentive to use less water, the MPs said. Less than a third currently have one.
Figures on water usage are unreliable and need to be improved, the MPs said.
"It (Ofwat) does not even have trustworthy information on leakage and consumption," Leigh said. "As another dry summer approaches, the patience of water consumers with the industry regulator will wear increasingly thin."
The Met Office has forecast hot, dry weather this summer after record temperatures in April.
Tough water restrictions were imposed in parts of the country last year after the Environment Agency warned that southeast England faced the worst drought in 100 years.
Ofwat said leakage had dropped by a third in the last decade, adding that bills would be 90 pounds a year higher without its work.
"Where companies have not delivered, we have taken action to protect consumers," it said in a statement.
"The action we took against Thames Water for failing to meet its leakage target last year was the best outcome for consumers.
"We agreed a legally binding undertaking that committed the company to invest, at shareholders' expense, an extra 150 million pounds -- more than twice the maximum fine we could have imposed."
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This is something that really needs to be dealt with water conservation will become a big issue soon.[/color]LONDON (Reuters) -
The water watchdog Ofwat must toughen up its "limp attitude" to regulation by imposing the maximum fine on companies that fail to fix leaky pipes, an influential group of MPs said on Thursday.
(Advertisement)
In a critical report, the Public Accounts Committee said Ofwat's decision not to fine Thames Water for missing leakage targets for six years running must not be repeated.
"Ofwat has been passive in its regulation of the water industry," said committee Chairman Edward Leigh. "At the same time it has paid little heed to the interests of water users.
"Thames missed its annual leakage targets for six years in a row without so much as a slap on the wrist.
"In future, such a wanton waste of water by a company must be rewarded with the maximum possible fine."
After avoiding a fine last July, Thames Water agreed to replace hundreds of miles of old pipes.
Ofwat must also push harder for more water meters, to give people a financial incentive to use less water, the MPs said. Less than a third currently have one.
Figures on water usage are unreliable and need to be improved, the MPs said.
"It (Ofwat) does not even have trustworthy information on leakage and consumption," Leigh said. "As another dry summer approaches, the patience of water consumers with the industry regulator will wear increasingly thin."
The Met Office has forecast hot, dry weather this summer after record temperatures in April.
Tough water restrictions were imposed in parts of the country last year after the Environment Agency warned that southeast England faced the worst drought in 100 years.
Ofwat said leakage had dropped by a third in the last decade, adding that bills would be 90 pounds a year higher without its work.
"Where companies have not delivered, we have taken action to protect consumers," it said in a statement.
"The action we took against Thames Water for failing to meet its leakage target last year was the best outcome for consumers.
"We agreed a legally binding undertaking that committed the company to invest, at shareholders' expense, an extra 150 million pounds -- more than twice the maximum fine we could have imposed."