An industry consultation is currently taking place ahead of new connection charges which are expected to come into force in April 2018.
New connection charges can be complex and confusing, with each network taking a different approach. This issue is now set to be tackled as the Department of Environment, Food and Rural Affairs (Defra) have provided guidance to Ofwat in regards to a change in these charges.
A change in new connection charges would help improve transparency between suppliers and consumers, while enabling Ofwat to set ‘Charging Rules’ which all water and waste water companies must abide to.
The government’s guidance to Ofwat set out four overarching charging principles which are as follows;
- Stable and predictable charges
- Transparent and customer focused charging
- Fairness and affordability
- Environmental protection
These changes are set to come into force in April 2018.
A consultation is now taking place between Water UK, United Utilities, Thames Water, Anglian Water, Severn Trent, House Builder Association and House Builders Federation. Any charging options which are devised will be tested against various scenarios over the coming months. The intention of the consultation is to establish fair and simple charges which will be finalised at the earliest opportunity.
As well as the industry consultation, firms such as United Utilities will be open to feedback from its customers in various focus groups which will take place over the next few weeks. The stability provided by the new principles will be vitally important to customers such as developers or self/ custom builders in terms of determining project viability. Read more about United Utilities’ focus groups here.
If you would like to learn more about the opening of the water market in England and how it could benefit your business, feel free to visit the water deregulation section on our website or get in touch by calling Apollo on 01257 239500.