ARCHIVE: Cave Review: Interim report

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The Review published its interim report on 18 November 2008. The report recommended that Government introduces legislation to allow over 162,000 large public and private sector organisations in England and Wales to choose their water and sewerage retailer for the first time.

The Review also advised that retail divisions of water companies should be made legally independent from their network business. At the same time, the report proposed a series of changes to the industry to encourage new water and wastewater suppliers to enter the market.

Together, these measures would reduce costs and increase service levels for all customers – non-domestic and households - and support the more efficient use of water. They would also allow companies to better meet the challenges facing the industry including climate change, containing costs, rising consumer expectations and water efficiency.

The Review also set out emerging findings on extending competition to other parts of the water industry. The Review suggested a need for the costs of abstraction and discharge to better reflect social, economic and environmental costs and noted the potential scope for greater competition in the treatment of water and wastewater while ensuring the industry can continue to attract low cost funding.

In addition, the Review included emerging findings on measures to increase the level of innovation in the water industry: Government and regulators providing clear signals about desired outcomes; adopting a risk-based approach to quality standards; enhancing regulatory incentives; and supporting public good research and development.

The report also asked stakeholders for their views on a number of areas and would welcome responses, and any other comments. This closed on 9 January 2009.

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