I will say a little more about what extra powers I think the regulator should have, and perhaps at that point I will deal with some of questions raised by the right hon. Gentleman.
The Opposition will seek to amend the Government’s legislation and address its central weakness, which is the lack of measures to tackle the contribution that rising water bills are having on household budgets. First, we will seek to grant Ofwat more wide-ranging powers to
reopen price reviews between the current five-year periods. In his answer to me last Thursday the Secretary of State said:
“I have written to water companies to call on them to consider the pressure on household incomes when making future bill decisions and, in particular, to consider whether they need to apply the full price increases next year allowed for in the 2009 price review.”—[Official Report, 21 November 2013; Vol. 570, c. 1350.]
However, it should not be for water companies simply to “consider” limiting price rises; the regulator needs much greater powers of intervention when those companies are making far more than anticipated at the time of the review.