Water companies behind on investment – Ofwat report
Water companies have so far failed to make the investments they had promised when price limits were last agreed with Ofwat, according to a new report from the regulator published on Thursday.
Instead of the £4.3bn water companies in England and Wales promised in 2004, only £3.4bn was invested, the Financial performance and expenditure of the water companies in England and Wales 2005-06 Ofwat report shows.
At this rate of investment reaching agreed targets for 2010 will be difficult, Ofwat warned.
Ofwat chairman Philip Fletcher said: “When we set price limits companies argued strongly that they required more money to safeguard improvements to customer services and the environment.
“But they have been slow in getting the schemes started and face a stiff challenge if they are to meet all requirements by 2010.
“We and our fellow regulators will monitor closely the continuing performance of water companies to ensure that they deliver fully the programmes which they accepted as part of the price limit package.
Were companies to fail to deliver we would adjust price limits to make sure that customers do not pay for work that has not been provided.”