Under the new Water Bill, currently making its way through the House of Commons, all non-household water and sewerage customers in England will be able to switch their retail supplier from 2017, clearing the way for businesses to renegotiate their exiting arrangements.
However, having concluded its inquiry into the potential implications of the Water Bill, the committee said it was unconvinced that extending the legislation to Wales would result in the increased benefits for customers it is designed to encourage.
Dwr Cymru, Wales’s largest water supplier, operates as a not-for-dividend company with funds invested back into its water supply network, and the committee used its business model as one example why competition in Wales would be ineffective.
Lord Dafydd Elis-Thomas, chair of the Environment and Sustainability Committee, said: “The cost of introducing the changes proposed in the UK Government’s Water Bill are significant and, given the not-for-dividend model employed by Dwr Cymru, the committee is not convinced such changes would provide any increased benefits to customers or quality of service in Wales.”
“The committee was also concerned that any potential discounts or savings offered to non-household customers could result in increased bills for households to make up the difference.
“Given that many households in Wales are struggling to pay their existing bills this is something we believe should be avoided.”