Overview

This bill allows the UK government to provide financial assistance to water companies in England and Wales. This assistance can be used to lower water and sewerage charges for customers and to fund major infrastructure projects.

Description

The Water Industry (Financial Assistance) Bill grants the Secretary of State the power to provide financial aid to water companies (undertakers) and licensed water suppliers in England. This assistance aims to achieve two key objectives:

Reducing Water and Sewerage Charges

The bill allows the government to provide grants, loans, or guarantees to reduce charges for water and sewerage services for customers in an undertaker's area. This aid can be provided to all customers or a specific group of customers. The aid can be given directly to the water company or indirectly through arrangements with other companies.

Funding Major Infrastructure Projects

The bill also enables the government to fund the construction or improvement of water and sewerage infrastructure. This funding is only available for exceptionally large or complex projects, and the infrastructure must be used by an English water undertaker for fulfilling their statutory duties. Financial assistance can take various forms, including grants, loans, guarantees, insurance, or even share purchases in relevant companies. The financial support may be provided before, during, or after the completion of the project.

Government Spending

The bill doesn't specify exact figures for government spending. The amount of financial assistance will depend on the specific applications approved by the Secretary of State and the size and scope of the projects. The financial commitment is potentially significant, as it covers both reducing customer bills and funding large-scale infrastructure improvements.

Groups Affected

• Water companies (undertakers and licensed suppliers): They could receive financial aid, leading to improved financial stability and the ability to invest in infrastructure or lower customer charges.
• Water customers: They may benefit from lower water and sewerage bills, depending on how the financial assistance is allocated by water companies.
• Taxpayers: They will ultimately fund the government's financial assistance through taxation.
• The environment: The bill could lead to improvements in water and sewage infrastructure, potentially benefiting the environment.

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