The Water Authorities (Return on Assets) Order 1987

Return on value of net assets

4.—(1) In this article, in relation to any water authority —

“their 1988 balance” means the amount by which that authority’s 1988 achievement, as defined in the Water Authorities (Return on Assets) Order 1986(1), exceeded or fell short of the rate of return specified for that authority in the Schedule to the said Order; and

“their 1989 achievement” means the aggregate of —

(a)

their 1988 balance, or 0.2 per cent. of the value of their net assets, whichever is the lesser amount,

(b)

the current cost operating profit of the authority earned for the financial year 1988—89 from the authority’s functions other than functions relating to land drainage, and

(c)

any amount transferred to their appropriation account in respect of that year from any tariff equalisation fund maintained by the authority.

(2) The rate per cent. shown in relation to any water authority in the Schedule to this Order is specified as the rate of return on the value of their net assets which the Secretary of State considers it reasonable for that authority to achieve in respect of the financial year 1988—89 (in this article referred to as “the specified rate for 1989”).

(3) It is hereby directed that during the financial year 1988—89 each water authority shall discharge their functions with a view to securing that their 1989 achievement expressed as a percentage of the value of their net assets is not less than the specified rate for 1989.

(1)

S.I. 1986/1952.