Ofwat welcomes the strategic policy steer it is receiving from Defra but is "slightly nervous" about the requirement in the Water Bill to act "in accordance" with that statement, Ofwat chief executive Cathryn Ross has told the Public Bill Committee. Ross (pictured right) told the committee, which is currently examining the Bill, that the strategic policy steer from Defra was helpful. However, she said to act in accordance "is a strong steer. I am sure that that is what is intended, but it seems to go against the thrust of independent economic regulation. We would be more comfortable with something that said we would have to have regard to it, take it into account, give it due regard, or something like that". Asked about the duty that would be placed on Ofwat to ensure resilience of water and sewerage provision, Ross said Ofwat's concern is that a resilience duty might be seen by the water companies "as a licence to build, which is precisely what we have been trying to move away from with some of the innovations in our Periodic Review".
展开▼
