5 April 2007
Ofwat, the regulator for the water industry, has declared that it is "disappointed with the lack of progress" in the area of improving competition within the water marketplace.
More competition would benefit consumers as with company's vying for customers' attention, water rates could see a decrease.
The announcement follows the publication of Ofwat's internal competition review which stated that the restrictive nature of the costs principles currently used by water suppliers was limiting the amount of competition.
Keith Mason, Ofwat's Director of Regulatory Finance and Competition, said: "We take our duty to promote competition very seriously and are disappointed by the lack of progress.
"We want to see effective competition in its most appropriate form across the whole range of water company activities. This will benefit consumers and the water industry as a whole."
A further review will now take place and shareholders have been invited to offer suggestions as to how to kick-start competition among water suppliers again.
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