Letter to the Chief Executive, Water UK,
from the Chief Executive, Environment Agency
PERIODIC REVIEW OF WATER PRICE LIMITS 2000-05
I am responding to your letter of 11 February
2000. I see no need for uncertainty about the National Environmental
Programme (NEP) approved by Ministers. These have been clearly
laid out in approved spreadsheets.
Appendix E was a surprise and seeks to constrain
the Agency. This is unacceptable. However, this does not mean
the Agency would act to destabilise the delivery of the NEP. We
do, however, need to be able to respond to external events such
as new legislation or a change in Government policy.
Given the substantial investment since 1989,
the Water Companies need to realise that new failures of existing
standards are not a quality obligation to wait for AMP4. As with
any other industry we will expect action without delay to ensure
compliance with existing standards.
I am concerned that you suggest the approved
Water Resources Plans should be reviewed to reflect the final
determinations. All our work has been carried out ensuring that
Water Companies and Ofwat have both a Ministerially approved NEP
and an approved Water Resources Plan available to enable necessary
financing to be included in the final determination. It will not
be appropriate for these obligations to be amended given the comments
on pages 34 and 35 of the Final Determination document.
Copies of this letter go to Alan Davis (DETR),
Mike Rouse (DWI) and Ian Byatt (Ofwat).
13 March 2000
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