View Full Version : Dumbo - John Prescott
Housing plans 'risk water shortage'
Press Association
Tuesday June 6, 2006 10:08 AM
The Office of the Deputy Prime Minister (ODPM), led by John Prescott, has been criticised for failing to consider water shortage warnings when planning thousands of new countryside homes.
A powerful all-party House of Lords Science and Technology Committee said the Government had "failed to consider the water management implications of their house building plans at an early enough stage". They added in their Water Management report: "Along with the Environment Agency, they must ensure that the water companies' plans factor in what is bound to be a significant increase in demand."
Chairman Lord Selborne told a Westminster news conference there was "quite a muddle in what was then the ODPM and Defra, on the projections as to what the increased water demand would be, for example, in the Thames Gateway."
On former environment minister Elliot Morley, he said: "When he gave evidence to us, he misinformed himself as to what the consequences were for the increased water consumption.
"He thought it would be 0.1%, well it simply wasn't. As we teased the figures out it was 0.1% over a previous prediction. No wonder the water companies and the public don't have a lot of confidence in planning if some basic errors like this can happen.
Lord Selborne said the planning process took too long, an inevitable consequence of the consultation process, adding: "There were many meetings, but we didn't feel that the water companies themselves were sufficiently consulted. We felt that either they had failed to take the opportunity themselves or that the ODPM had failed sufficiently to take account of their own views. It would have been throughout his (John Prescott's) succession.
"Responsibility for water was at one time under the DETR (Department for Environment, Transport and the Regions) and then under ODPM, shared with Defra. But ODPM would have been John Prescott."
Liberal Democrat Baroness Sharp of Guildford added that the ODPM had "driven" the sustainable communities programme and the criticism was one of "inadequate consultation between departments over their plans".
The report also demands a major cutback in the "unacceptably high" level of leaks from water company pipes, alongside a more coherent and better-funded promotion of sensible water use among domestic and business consumers. The Government is urged to make it easier for water companies to have universal metering of customers, while providing extra help through the benefits system for people struggling to pay their bills.
The report reveals a "very high level" of unpaid water bills and says those people who can afford to pay but refuse to do so, should be partially disconnected from the water supply. At the root of the problem is the Government's failure to ensure properly integrated water management and the peers call for new regional boards, with greater consumer and environmental representation, to work out the best balance of measures for each part of the country.
© Copyright Press Association Ltd 2006, All Rights Reserved.
Well that's my water bill gone up 100% I better start investing in water and fast.
Our government is good at forward thinking isn't it?
Oh well, guess we'll just have to resort to old methods...I know there's an old pump down near the town steps, dunno if it works though...failing that, I could always use an old Egyptian technique...though I dunno which would be worse, being of dehydration or drinking from an English river...
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That’s water poaching carrying a minim 25 years in prison, coming soon to the south of England. :damn:
It's amazing that England of all places has a water shortage.
It's amazing that England of all places has a water shortage.
It's the wrong type of rain apparently, it doesn't soak into the water table properly - just runs off into the sea.
It's amazing that England of all places has a water shortage.
Well said. :yep:
It's the wrong type of rain apparently, it doesn't soak into the water table properly - just runs off into the sea.
Not that old excuse please. :damn:
It's always the wrong kind of leaves,ice,wind,sunlight and now water. It's all rubbish it's time to give these water company's six of the best. They make big profits and only repair broken pipes when they feel like it, and of course blame the consumer for their problems. And why because they are to busy smoking cigar's and counting all that money, profit is power.
LMAO
I saw this on the news yesterday... fcuking country is going to the dogs and no mistakes.
If it weren't for the fact it's true I'd be lauging my socks off and using a hosepipe to wash my car with (I have not washed my motor in the 2 years since I bought it).
Makes me ashamed to live here some days. It really does.
It’s time for the people’s revolution. :up:
It’s time for the people’s revolution. :up:
Naah, you've got to wait another four-five months! :up:
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Konovalov
06-07-06, 07:16 AM
Makes me ashamed to live here some days. It really does.
Cheer up. If England win the World Cup will that make you feel better? :up:
^^
Hehe, I appreciate the sentiment, but I'm not all that interested in football...
In the grand scheme of things I'd rather have a decent fair level of taxes and governmental spending and well thought out legislature combined with a will from all politicians and governement departments and public sector businesses to not be the selfserving syncophantic bunch of toadying freeloaders that the UK has at the moment.
Hold on a minute, that is about as likely as England winning the world cup! :smug:
Naah, you've got to wait another four-five months! :up:
Why the wait? :-?
^^
Hehe, I appreciate the sentiment, but I'm not all that interested in football...
In the grand scheme of things I'd rather have a decent fair level of taxes and governmental spending and well thought out legislature combined with a will from all politicians and governement departments and public sector businesses to not be the selfserving syncophantic bunch of toadying freeloaders that the UK has at the moment.
Hold on a minute, that is about as likely as England winning the world cup! :smug:
jumpy, we are few in number. Here, here I agree with what you said. :up:
Why the wait? :-?
Don't you know? Every good revolution has to take place in October, it's a law brought in during 1917. :up:
Don't you know? Every good revolution has to take place in October, it's a law brought in during 1917. :up:
:rotfl: :rotfl:
http://newsvote.bbc.co.uk/nol/shared/img/printer_friendly/news_logo.gif
Are water profits flowing too freely?
By Toby Poston
BBC News business reporter
Summertime, and for many the watering isn't easy.
An estimated 13 million people in south-east England have been hit with water use restrictions, ranging from hosepipe bans to prohibitions on car washing and window cleaning.
Water companies and the government say that 19 months of below-average rainfall are to blame.
At the same time, statistics reveal that the water industry in England and Wales loses about 3.5 billion litres of water through broken and leaky pipes each day.
Meanwhile, households saw their water and sewerage bills rise by an average of 5.5% last April - well above inflation.
It is clear to see why many customers and consumer groups are up in arms at the performance of water companies.
Profits flowing
For investors, it has been a different story.
Recent days have produced bumper profits for a string of UK water companies.
Severn Trent announced that higher bills and cost-cutting had delivered an 18% rise in yearly profits to £270m ($507m).
United Utilities, which supplies customers in the north-west, reported a 21% increase in profits to £481m, while utility group Pennon - serving the south-west - saw profits rise 25% to £111m.
Anglian Water owner AWG recently announced that annual profits had trebled to £109m.
The current reporting season, one city analyst has predicted, could produce profits for the sector as a whole of £2bn.
Is it right that water companies can be generating such big profits while millions of customers are getting restricted supplies?
Privatisation
For perspective, it is important to understand that the UK water industry operates in a rather peculiar way.
Most of the industry in England and Wales was privatised in 1989, when regional monopolies were introduced under the regulation of industry watchdog Ofwat.
Among its powers, Ofwat controls the maximum price at which water companies can sell their water.
Every five years it conducts a "Periodic Review". After looking at business plans and investment requirements, it sets an annual price limit which is meant to allow enough revenue for operations, investment - and a profit.
If water companies exceed Ofwat's efficiency targets, the idea is that the extra money eventually comes back to customers in the form of lower prices when the next review comes around.
Big borrowings
The water industry likes pointing out that, for every £2 earned in profit, £3 is invested into improving services.
Water companies have invested more than £50bn in pipes, reservoirs and water treatment works since privatisation.
But this money has had to be borrowed - and to get a good rate from lenders the companies need their books to look good.
Bondholders, banks and investors all want to see that the water utilities are secure businesses which will offer them a solid return on their money.
The regular cycle of Ofwat reviews is a bonus here, allowing them to make a reliable estimate of company profits for five years at a time.
The yo-yo effect
However, the five-year reviews have had something of a yo-yo effect.
Following what was seen as a rather friendly review for the 1995-2000 period, Ofwat clamped down on charges in its review for 2000-2005.
As a result, investors deserted the sector. With share prices halving during the period, it became harder for the water firms to raise money for investment.
Once markets got the first indications that the 2005 review would be a return to generosity, the shares headed back up.
"We would like to get a more sustainable footing for setting price limits," says Janet Wright, economic regulation advisor for Water UK, which represents water companies.
"The yo-yo effect is not good for customers or investors,"
AVERAGE PRICE LIMITS SINCE WATER PRIVATISATION
1990 to 1995 - 5% above inflation
1995 to 2000 - 1% above inflation
2000 to 2005 - Fall of about 2%
2005 to 2010 - 4.2% above inflation
Price limits: Every five years Ofwat revues water companies' business plans before setting an annual price limit for each company for the next five years.
Ofwat's 2005-2010 review set price limits that allowed water companies to raise prices by an average of up to 4.2% a year on top of inflation - meaning that the average household bill would rise by £46, or 18%, to £295 during the period.
It also said that companies could make a return on their assets of 5.1%, meaning that for every £100 investors put in, they could expect to get £105.10 back.
That is not a great return, but in line with many other investments perceived as low-risk.
Consumer complaints
The healthy profits announced by water companies in recent weeks have left many consumers complaining that bills have been allowed to rise too much.
Many find it hard to understand why they should be paying more for water when some areas are actually experiencing supply problems.
A recent poll for ITV News found that 79% of customers thought water company profits were too high.
"With prices going up and companies reporting strong profits, we will ask for reassurance on consumer's behalf whether prices have been allowed to rise too much, and whether they are getting what they paid for," says Dame Yve Buckland, chair of the Consumer Council for Water.
But analysts point out that this year's bumper profits won't be repeated during the rest of the 2005-2010 review period.
They say Ofwat has allowed water firms to ramp up prices this year in order to recover some of the costs they were hit with during the tough 2000-2005 review period.
"This is a cost recovery year for them, and it is just unfortunate that this has coincided with some smaller companies obtaining drought orders," says Verity Mitchell, an analyst with HSBC bank. That may be good news for the water companies - but it is certainly cold comfort to someone whose hanging baskets are wilting in the heat.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/5049176.stm
Published: 2006/06/07 12:44:29 GMT
© BBC MMVI
These water companies are a bunch of crooks. :smug:
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