REUTERS

LONDON THE government on Tuesday outlined plans to make it easier for water companies in England and Wales to merge, new players to enter the market and businesses to switch suppliers.

The draft bill reinforced changes to the water sector proposed last December aimed at improving the industry’s ability to cope with increasing demand and the effects of climate change like floods and droughts.

The government said reforming the water industry could save the economy 2 billion pounds ($3 billion) over the next 30 years.

Scotland has already made similar reforms to its water market and its public sector alone is set to save around 20 million pounds over the next three years.

“This draft bill will create a modern, customer-focused water industry and for the first time all businesses and other organisations will be able to shop around for their water and sewerage suppliers,” said the Secretary of State for Environment Caroline Spelman.

“By slashing red tape we will also stimulate a market for new water resources and incentivise more water recycling.” The draft bill will be scrutinised by parliament and industry and a realistic target date for opening the retail water market is April 2017, the Department for Environment, Food and Rural Affairs (Defra) said.

The proposals come as heavy rainfall continues to threaten large parts of Britain.