Ofwat has launched a consultation setting out its proposal to issue new rules for incumbent English water companies to comply with, when setting their bulk charges in supplying water to or discharging wastewater from new appointments and variations.
The regulator is proposing that these would come into effect from April 2026, and that they would apply to incumbent English water companies in place of the guidance issued in 2021.
Ofwat also confirmed it is currently engaging with Welsh Government on NAVs in Wales and will consider the potential for charging rules between two Welsh companies as part of that engagement.
Ofwat said its aim in proposing charging rules is to improve standards of setting and communicating charges, alleviate any potential competition law concerns, and make it easier to check and compare charges and resolve charging disputes.
The closing date for this consultation is Tuesday 22 July.
In the consultation’s executive summary, Ofwat said:
“New appointees are an important part of the water sector and, when they perform well, they support home building and provide benefits to customers and the environment. In recent years developer services have transformed – particularly through the growth in new appointees and self-lay providers – bringing significant benefits to developer customers in terms of the services offered, flexibility and cost reductions.
“We have supported these improvements through reforms such as changes to our new connection charging rules for English companies and introducing financial incentives for companies in England and Wales (D-MeX) to better support developer customers.
“Bulk charges are a critical part of a bulk agreement. They form a large element of most new appointees’ costs and, therefore, whether a new appointee can compete to serve a site. Currently some incumbents’ published bulk charges are difficult to calculate and compare, and their derivation is unclear. To improve standards we think that it is proportionate to introduce charging rules.”
For more info, visit: https://www.ofwat.gov.uk/consultation/consultation-on-rules-for-bulk-charges-for-new-appointees/
