These services are often referred to as “new connection services” and the way that we charge for them changed in April 2018.
If you are involved in property development and you require new connections to our water or wastewater networks, then these changes will have affected you. Customers affected will fall broadly in to a number of groups:
From 1 April 2018, water and sewerage companies are required to follow new charging rules, set by our regulator Ofwat. This means that many of our charges are fixed, enabling developers, SLPs and NAVs to calculate a reasonable estimate of their costs for our services before making an application to connect.
Fixed charges now apply to many of our new connection services, including:
Developers are liable to pay us infrastructure charges when they connect their new properties to our networks for the first time (or reconnect properties that have been disconnected for longer than five years). From April 2018, our infrastructure charges have reduced and will remain at the same level until 31 March 2020.
Where new water mains are needed for a development site, we offset the cost of the new mains by accounting for the future income we expect to receive from the occupiers of the new buildings. This is known as “income offsetting”.
In April 2018, we changed how we calculate the income offset amount and this will affect:
Please see our Charging Arrangements documents, available to download below. We also have a document setting out transitional arrangements for those developments that were already in progress or were due to progress between 1 February 2018 and 31 March 2018.