No change in water price curb
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Ofwat, the water industry regulator, has ruled out changes in price controls before 1999 despite the companies' ability to hand out hundreds of millions of pounds to shareholders and customers.
Ian Byatt, director-general of Ofwat, said that an about-turn on prices, as recently announced by the electricity watchdog, Offer, would be "bonkers". Launching his office's annual report, he said stability was important as it gave companies incentives to improve, which in turn benefited customers.
He declined to comment on Offer's re-opened price review, but added: "I think the idea of pulling it all up by the roots and starting again is bonkers."
His comments will come as a relief to investors, who were outraged in March when Offer decided to overturn prices agreed only last year. The move by Professor Stephen Littlechild, director-general of Offer, caused nervousness about all the regulated utilities.
Mr Byatt said companies that shared the benefits of higher efficiency would be rewarded at his next price review in 1999. A sharing of gains such as that recently announced by North West Water was a "good starting point".
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments