UK: Ofwat sets out new powers to fine water companies

The United Kingdom's Office of Water Services (Ofwat), Secretary of State for the Environment and the Welsh Assembly Government have set out how new powers to fine water companies will be implemented...

LONDON, March 24, 2005 (GNN) -- The United Kingdom's Office of Water Services (Ofwat), Secretary of State for the Environment and the Welsh Assembly Government have set out how new powers to fine water companies will be implemented.

The new powers come into force on April 1. They allow Ofwat to fine statutory water companies and licensed water suppliers if they breach statutory duties, appointment or licence conditions, or if they do not meet required standards of performance.

The new powers available to Ofwat will bring it into line with those already available to other regulators.

The director general of Water Services is the economic regulator of the water and sewerage companies in England and Wales.

The Department for Environment, Food and Rural Affairs, the Welsh Assembly Government and Ofwat carried out a consultation on the issue in December and January. From that, it jointly published a statement of policy on the new powers and a response to the consultation. These documents are available on our website: www.ofwat.gov.uk.

A statutory instrument to define relevant turnover for the purposes of calculating a fine was laid before Parliament on March 7. This can be found at www.legislation.hmso.gov.uk/si/si2005/20050477.htm

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