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Water Companies

Volume 448: debated on Tuesday 11 July 2006

To ask the Secretary of State for Environment, Food and Rural Affairs what allowance Ofwat made for each water company for capital works in each of the last five years for which figures were available; and what the value was of the capital works completed by each water company in each year. (83535)

Ofwat makes assumptions on the capital investment required by companies at each price review for the ensuing five-year period.

Ofwat has only published annual expenditure against its assumptions for 2004-05. The following table gives information for the five-year period 2000-05. Ofwat will publish data for 2005-06 later this year, following analysis of the June return submission from companies.

The regulatory regime provides incentives for companies to out-perform Ofwat’s assumptions. Companies retain the benefit from these savings until the next price review when price limits are reset and Ofwat takes the savings into account.

2004-05 prices (£ million)

Total volume of investment activity 2000-01 to 2004-05

Assumed

Actual

Water and sewerage service

Anglian

1,511

1,334

Dwr Cymru

1,332

1,194

Northumbrian

1,059

1,003

Severn Trent

2,268

1,914

South West

902

801

Southern

1,133

1,145

Thames

2,417

2,484

United Utilities

3,308

3,000

Wessex

936

794

Yorkshire

1,789

1,553

Total

16,655

15,223

Water service

Bournemouth and West Hampshire

60

49

Bristol

117

107

Cambridge

16

18

Dee Valley

31

30

Folkestone

31

29

Mid Kent

111

106

Portsmouth

55

41

South East

211

180

South Staffordshire

104

103

Sutton and East Surrey

97

90

Tendring Hundred

15

15

Three Valleys

281

275

Total

1,129

1,042

Industry total

17,784

16,265