Telecoms and water industries cut from Utilities Bill

The telecoms and water industries are to be taken out of the remit of the Utilities Bill.

The Bill was intended to set up a common regulatory framework to cover all utilities, but industry has objected to treating the telecoms industry in the same way as other utilities.

DTI Secretary Stephen Byers announced the changes in the House of Commons today. Both the telecoms and water regulatory powers are to be updated in separate white papers on the subject.

Industry has reportedly been lobbying for the telecoms industry to be removed from the Bill - which focuses on consumer protection - claiming it would hinder the development of ecommerce.

The DTI stressed it is still committed to protecting consumers' interests in the telecoms sector.

Current regulator Oftel said it would continue to protect consumers despite the removal of telecoms from the Bill and added it would work with the government on its forthcoming review of telecoms and broadcasting industries.

A spokesman for the water regulator, Ofwat, said that looking at water utilities separately will allow a number of areas to be addressed.

A spokesman for the Department of Environment, Transport and the Regions - which is now pushing the Bill through - said it hoped to publish a draft Bill by the end of the year for water regulation.