Ofwat publish new water connection charges
Ofwat yesterday published new rules to make the charges for new water connections to housing developments fairer, simpler and clearer.
The new approach, which applies in England, marks a significant change and is expected to deliver major benefits to developers and other customers.
As part of the new rules, water companies will offer more fixed charges, giving developers greater clarity and visibility over costs. They also make sure that developers won’t pay for pre-existing issues and only pay on a pro-rata basis for assets that benefit a wider set of customers.
There will also be more effective competition from self-lay and new appointees which can drive down costs and improved service and choice.
The changes could result in faster connections, because water companies will be able to set charges which are simpler and quicker to calculate and for which developers can more easily and accurately plan.
The new rules will come into effect in April 2018, a year later than proposed in the consultation. This is to allow the industry enough time to plan for the transition.
Commenting on the new rules, David Black, Senior Director at Ofwat, said:
“Water companies provide a vital service for new housing development. That is why we are leading the way in reforming the charging structures to connect new sites to the water network.
“These new rules give developers more clarity and certainty and are fairer for all. What’s more, they could result in developments progressing more quickly – which is good news for everyone.
“Throughout our recent consultation, we heard widespread agreement about where we are trying to get to, but there was some concern that we are pushing ahead too quickly. We have listened to those concerns and built in an extra 12 months into the change process.”
In addition to the new rules, Ofwat has established transitional arrangements to safeguard business cases for any existing developments.
Latest News from
Cheaper water bills in the winter and other charging innovations – Ofwat calls for trials to help with cost of living and using water wisely23/09/2022 13:20:00
Ofwat is calling on water companies to trial creative and targeted ways in calculating customers’ charges to help make sure those who need support can get it.
Latest water and wastewater service rankings shows fall in customer service levels22/09/2022 11:25:00
Ofwat yesterday published the leaderboard for customer satisfaction and experience for water and wastewater companies for 2021-22.
Latest water and wastewater service rankings shows fall in customer service levels21/09/2022 14:15:00
Ofwat has today published the leaderboard for customer satisfaction and experience for water and wastewater companies for 2021-22.
PN 29/22 Ofwat consults on changes to business retail price caps05/09/2022 13:15:00
Ofwat is opening a six-week consultation on proposed changes to the retail price caps that apply to smaller business customers (consuming less than 0.5Ml per year) who have not engaged in the market.
Ofwat reveals progress on water industry leakage performance01/08/2022 13:15:00
Ofwat recently (29 July 2022) released new figures that shed light on the water industry’s performance on reducing leakage.
Ofwat raises bar on financial resilience28/07/2022 15:15:15
Ofwat has set out new proposals to improve financial resilience in the sector.
Ofwat confirms new open access competition for innovators and seeks to extend Innovation Fund to 203012/07/2022 12:15:00
Ofwat, the economic regulator of water services in England and Wales, has announced a new “open access” competition for innovators as its £200m Innovation Fund evolves to encourage more diverse ideas to transform water services for customers, the environment and society.
Price Review 2024: Ofwat sets out framework to deliver better outcomes for customers and the environment07/07/2022 13:15:00
Ofwat has today set out its draft methodology for the upcoming Price Review (PR24) with a focus on securing better outcomes for customers and the environment.
Ofwat comment on Thames Water announcement30/06/2022 14:20:00
Ofwat’s Chair, Jonson Cox, commented on this morning’s news that Thames Water’s shareholders have agreed to invest an additional £500m of equity into the business, with the prospect of a further £1bn of equity to follow subject to performance milestones :