The UK Government says plans to encourage more competition in the water industry will not be imposed on Wales against the wishes of the Welsh Government. Legislation was announced in the Queen's Speech to reduce water companies' monopolies in an attempt to encourage more investment in the industry.
The Welsh Natural Resources Minister Alun Davies had said that any intervention by UK ministers would be an "affront to democracy". He vowed to safeguard the not-for-profit status of Dwr Cymru Welsh Water, which supplies most of Wales and some neighbouring parts of England.
Britain's other water companies make returns to their shareholders. They include Dee Valley Water, which supplies Wrexham and Chester, and Severn-Trent, which supplies part of Powys. Plaid Cymru says it would be better to extend Dwr Cymru Welsh Water's model to other companies.