Appeal against United Utilities about one of the conditions it proposes to attach to agreements to adopt sewers at two new developments

Case number

OFW0016603

Summary of case

Sewerage companies and developers can choose to enter into an agreement whereby the sewerage company will adopt any sewers that the developer build on a site. As part of an agreement, the sewerage company can require a bond, otherwise known as a surety, to cover the cost of bringing the sewers to an adoptable standard (if appropriate).

We opened an appeal against United Utilities about one of the conditions it proposes to attach to agreements to adopt the sewers at two new developments in Cumbria. The condition relates to the amount of bond required from United Utilities to adopt the sewers on the developments once they have been built.

Summary of Ofwat’s final decision

Our decision is that United Utilities’ charges for two separate bonds were reasonable.

Relevant powers

Section 104 of the Water Industry Act 1991 – Agreements to adopt sewer, drain or sewage disposal works, at future date

Section 105 of the Water Industry Act 1991 – Appeals with respect to adoption

Date opened

2 February 2017

Date closed

24 July 2017

Key documents

Final decision

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