The Water Industry (Financial Assistance)Bill allows the treasury to offer contingent financial support for exceptionally large water or sewerage infrastructure schemes. It also provides for government to give water companies money to reduce charges on customers.
Labour sought amendments to require parliamentary scrutiny before either measure be applied to specific cases. These were voted down, as was an attempt to introduce national minimum standards for water company social tariffs.
Shadow water minister Gavin Shuker said: “We believe that when the secretary of state wishes to use the powers granted by the bill in the future, the least she can do is lay out her argument before a representative committee of the House.”
However, water minister Richard Benyon said this showed a desire to limit and delay government action to help hard-pressed bill payers.
“After so many years of debate, we want to get on with funding South West Water to enable it to cut bills for its household customers,” he said. “We also want to reassure potential investors in the Thames tideway tunnel at an early stage that the government are willing to provide contingent financial support for exceptional project risk when that offers the best value for money for Thames Water customers and taxpayers.”
The bill will next be read in the House of Lords.