Water competition not convincing enough for Wales

Government's proposals for water competition are not convincing enough to be extended to Wales, according to the newly appointed water minister for Wales.

Alun Davies, a member of the Welsh National Assembly, said he was not convinced by government’s arguments for introducing competition in the water sector and said there was no demand in Wales. 

“I’ve been underwhelmed by the proposals for competition. I don think Martin Cave has been convincing and I don’t think government is sure themselves. I’ve seen no evidence that competition will improve the price offered to domestic or business customers in Wales” he said. 

Davies said he had not been “drowned” by calls from Welsh businesses calling for competition and would work to protect Welsh Water from the proposals. The not-for-profit firm is the only one of its type and Mr Davies said it was envied across the UK. 

Davies comments follow the Queen’s Speech earlier this month, where the monarch said government will move forward with plans to “improve the water industry”, including retail and upstream reform. 

Stephen Crabb, Wales Office minister, said: “We are working closely with the Welsh government in finalising the Water Bill and have no intention of forcing competition on Wales. 

“However, making sure we have enough water is one of the major challenges we face in coming years. The changes we are making to the water industry will encourage economic growth and build resilience for the future.”