Calculating water resale prices
The 'Water resale order' outlines our rules which determine how much you should charge for water. The rules depend on whether water meters are installed. You should tell your purchasers how you have worked out their bill.
No purchasers are metered
You must charge for water in one of the following six ways:
- split equally between the purchasers, or in proportion to:
- the number of people in each property
- the rateable value of each property
- the total floor space of each property
- the number of bedrooms in each property
- half the bill according to method 1 (split equally between purchasers) and the other half according to any one of methods 2-5
If you share the water supply with your purchasers, you must pay your share of the total bill in line with the rules set out above.
You can only charge your purchasers for the period they have lived in that property.
If you charge your purchasers more than the average bill in your region, you must show that you worked out their bill using one of the above methods.
All purchasers are metered
If all the purchasers are metered, you must
- charge each purchaser the same amount for each cubic metre as you pay the water company
- share the cost of the standing charge you pay the company equally between all purchasers.
Some purchasers are metered and some are unmetered
If some purchasers are metered, you must work out the charges for metered purchasers first and subtract these from the total bill. You must then work out the charges for the unmetered purchasers using one of the six rules above.
Administration charge
Anyone selling water or sewerage services is entitled to make a reasonable charge for administration costs and maintaining meters. You can recover about £5 a year from purchasers without a water meter and £10 a year from purchasers who have a meter.
The administration charge applies to each purchaser, not each occupant.
