Summary and Background
3.The Water Industry (Financial Assistance) Act will enable the Government to meet commitments it made in the Autumn Statement 2011 and Water for Life CM 8230 (the “Water White Paper”) published by the Government on 8 December 2011.
4.The Water Industry (Financial Assistance) Act amends the Water Industry Act 1991 (WIA) by adding two sections after section 154. The Act enables the Secretary of State to provide financial assistance to water and sewerage undertakers (appointed under the WIA and commonly called “water companies”) and other water suppliers licensed under the WIA to secure a reduction in water and sewerage bills where desirable to do so. It also enables the Secretary of State to give financial assistance in connection with the construction of water or sewerage infrastructure or the carrying out of works to existing water or sewerage infrastructure where the construction or works involve exceptionally large or complex works. The powers apply only in respect of water or sewerage undertakers whose areas are wholly or mainly in England.