Ofwat sets out new charging rules for developers
Ofwat has published a new set of rules that water companies must adhere to when determining how to charge developers for providing new connection services for water mains and public sewers.
The rules, which come into force in April 2018, mean that water companies will need to draw up their own charging arrangements on an annual basis, and demonstrate that they meet the regulator’s requirements.
The rules say that the charging arrangements must be published in a single document which is available no later than two months before they come into effect; it must lay out the cost of providing specific infrastructure and explain how each charge has been calculated in a clear and accessible manner.
The charging arrangements need to be presented in such a way that developers or other customers can “confidently work out a reasonable estimate” of the charges payable if they know the relevant parameters of a development.
The charges themselves must reflect Ofwat’s principles, including: fairness and affordability; environmental protection, stability and predictability; and transparency and customer-focused service.
The charges cannot include the cost of work needed to modify or enhance existing network infrastructure in order to address pre-existing deficiencies or to enhance network flexibility, either in capacity or capability, which are unrelated to the proposed new connection services.
The utilities must provide a reasonable choice of times and methods of payment of the charges and set these out in the charging arrangements.
On the payment of security which the water firms are allowed to require prior to commencing work, the rules say that the type and amount of security should not be “unduly onerous”, and should take into account the risk to be borne by the utility in carrying out the work in question.
The published charging rules are available here.
- Government announces £130M extra funding for flood defence schemes More than 40 new flood schemes have been given the green light as the government earmarks an addition £130M to help secure... Read More >
- Ofwat chairman calls for reform of Thames Water Ofwat chairman Jonson Cox has set out a challenging five-point plan for reform of Thames Water, following criticism of the... Read More >
- Water firms trailing on value for money The water industry is in danger of slipping behind other utilities when it comes to providing value for money to... Read More >
- Getting to Grips with... sewer jetting Jetting is an important tool for clearing sewer blockages, but care must be taken to use the right pressure for the pipe... Read More >
- Fats, oil and grease need clear thinking Latest research from Cranfield has shone a light on the characteristics of of fats, oil and grease (FOG) droplets entering... Read More >
- Getting to Grips with... Ice Pigging An innovative method of cleaning pipes, ice pigging is now being seen as a viable option for wastewater as well as clean... Read More >
- Interview: Professor Dragan Savic, Exeter University "If you can't measure, you can't manage - and the most uncertain element of water management is the demand." Read More >
- Interview: Rachel Dyson, Programme Manager, Anglian Water “We have been quiet as an industry on wet wipes, but now we are being vocal, because of the problems they are causing.” Read More >