6th August 2012
Cutting down prices should take a priority over improving water and quality; says Sir Ian Byatt, former head of Ofwat in a report published today by the Institute of Economic Affairs.
Byatt, who also formerly chaired the Water Industry Commission for Scotland from 2005 to 2011 said, “The drive to attain ever-increasing water and environmental quality at ever-increasing cost must come to an end.” He also suggested that “the regulator should set an indicative price cap so that water prices increase by no more than the rate of inflation”.
He added: “At a time when many families are struggling to get by, reducing the costs of basic necessities, like water, should be a priority. The increasing burden of regulatory policy on the water industry has contributed to rising prices and it is time for change.”
The report also suggested that competition in the retail water sector should be encouraged.