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Food and drink manufacturers have raised concerns about the impact increased competition in the water sector could have on strategic planning.
Commenting on the government’s draft Water Bill, the Food and Drink Federation (FDF) said it could weaken or undermine co-operation between water companies and their customers.
In written evidence to the Environment, Food and Rural Affairs Select Committee, the industry body expressed a preference for an integrated system.
It said a policy approach based on competition “may lead to sub-optimal decisions in respect of some broader strategic issues of safeguarding future supply”.
Water companies have long expressed similar reservations, in particular around upstream competition.
Some in the food and drink sector are taking advantage of the existing limited retail market in water supply, however. First Milk announced on Monday it was switching supplier to Severn Trent Costain and another firm is expected to do likewise before the end of the year.
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