Infrastructure charges
If as a new appointee you are providing new water supplies for domestic purposes (such as to new housing developments) you are legally entitled to levy infrastructure charges. These charges are designed to fund ongoing maintenance of the entire network up to the treatment plant, not just the on-site network.
Calculating infrastructure charges
Infrastructure charges are calculated in accordance with Condition C of each water companies' appointment. We determine the maximum charge that any company can levy.
Levying the charge
If you seek to provide a new water or sewerage supply for domestic purposes, you are entitled to collect the infrastructure charge. However, our view is that you are not in the same position as existing appointed water companies in needing the money to fund investment. Your infrastructure is new, and should not need reinforcement for some time.
If you are asked to pay an infrastructure charge
If you use a bulk supply agreement with an appointed water company for part of your water or sewerage supply, it may make an infrastructure charge. This is because it is likely to bear the ongoing maintenance of the network up to the treatment plant. Any infrastructure charge should be confirmed as part of the bulk supply agreement.
If you are asked to pay the infrastructure charge, then we would expect you to collect the revenue to which you are entitled, and to pass it all on to the appointed water company. We do not consider it appropriate for you to keep any of the revenue. If you do, we will consider this an unjustified gain in revenue that we will reflect when we next set price limits for you.
If you are not asked to pay an infrastructure charge
If you are not asked to pay an infrastructure charge then we do not consider it appropriate that you collect the money. If you collect an infrastructure charge that you do not pass on to the existing appointed water company (because they do not require you to do so) then we will consider it an unjustified gain in revenue that we will reflect when we next set price limits for you.
