Letter to the Chief Executive, Environment
Agency, from the Chief Executive, Water UK
PERIODIC REVIEW OF WATER PRICE LIMITS 2000-05
I have seen a copy of the letter that you sent
to Managing Directors on 4 January 2000.
It is important, given the tight price determinations,
that consistent messages emerge from all regulators. Differences
of opinion between regulators raises uncertainty and may affect
timely delivery of the programme. It is also important that all
regulators are realistic about what can be financed within tight
price limits.
Your letter says the Agency "is not bound
by" Appendix E of the final determination document. I would
be very grateful if you could explain in more detail what your
concerns are. As you say in your last but one sentence, we need
absolute clarity.
I am concerned to see your proposed treatment
of additional quality problems as "a failure to maintain
the necessary infrastructure". It is important not to confuse
quality and maintenance, and against a background of cuts in allowed
maintenance it will be impossible to achieve "remedial action
without delay".
No doubt you are aware that water resources
plans need to be reviewed and revised in the light of the final
determinations, not least to take account of the meter switching
actually allowed and the implications for extra water resources.
I hope that you have initiated work on this exercise.
Copies of this letter go to Alan Davis (DETR),
Ian Byatt (Ofwat) and Michael Rouse (DWI),
11 February 2000
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