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.
2 February 2017
24 July 2017
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