Why are we reviewing our approach to charging?
We know that historically the way we have charged for new connections has been complex and there has been confusion around different interpretations across the industry. This has been recognised by the Government, Defra and Ofwat as something that needs to change.
Changes to charges for new connections will help improve transparency, and provide greater clarity on charging. Defra have provided guidance to Ofwat about their expectations for these charges. This enables Ofwat to set Charging Rules, which we, and all other water and wastewater companies, must follow when setting charges for connections.
The new charges are expected to come into force in April 2018, we’re working with the industry and stakeholders to look at the various options that would comply with the new Charging Rules.
We’re working with Water UK and are involved in an industry consultation along with Thames Water, Anglian Water, Severn Trent, House Builder Association and Home Builders Federation. We’re working towards an industry approach and are currently developing charging options which will be tested against different scenarios, so we can consult as an industry in detail over the coming months.
It’s important to us that we get your views so we can develop an approach that works for all stakeholders, and facilitates sustainable development - making things simpler but fair, with more certainty of costs in the future.