Ofwat forced to give ground in battle over water price review

Water industry regulator Ofwat has eased off from proposals which had been strongly criticised by the Environment Agency for placing a cap on environmental spending after 2000. The Agency, which will soon publish its guidelines on selecting and costing environmental projects for the 1999 water industry price review, has strengthened its resolve in the light of further evidence that Ofwat was too lenient on the industry last time.

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