New connection charges for the future - England

About Consultation

Water companies have a duty to allow new connections to be made to their existing networks, including for new housing developments.

Water companies whose areas are wholly or mainly in England must implement our charging rules related to new connection services that have effect from 1 April 2018. For companies whose areas are wholly or mainly in Wales, we will consult and publish our rules, following the publication by the Welsh Government of final supplementary charging guidance to Ofwat on developer charges and other matters.

Our charging rules for English water companies will cover charges and asset payments by English water companies to developers, Self Lay Organisations (SLOs) and other customers for:

• connections with water mains and public sewers;
• the provision or adoption of new water mains, public sewers and lateral drains; and
• pipe diversions.

This document applies only to English water companies and does the following:

• Consults on a proposed change to our charging rules from 2020 in relation to the treatment of the income offset and asset payments. We are publishing draft consolidated Charging Rules for new connections and Charges Scheme Rules alongside this document.
• Covers a number of issues relating to the implementation of our current rules that need to be applied from 1 April 2018, i.e.:
  • informs you of our expectations for how the sector can best implement these rules; and
  • informs you of a minor revision with respect to upfront publication of charges that we intend to make to our new connections charging rules services (unless directed not to by the Secretary of State);
• Consults on proposed modifications to licence condition C (Infrastructure Charges) of the appointments of English water companies.

This document should be read in conjunction with two earlier documents. In July 2016 we consulted on a new approach to connections charging for English water companies. In December 2016 we published our decision to implement charging rules for new connections for companies.

We welcome your responses to this document by 5pm on 4 August 2017.  You can email your response to [email protected]. You can also submit your response by post to: Charging, Ofwat, 21 Bloomsbury Street, London, WC1B 3HF.