Ofwat has launched an investigation following an appeal made against United Utilities about one of the conditions it proposes to attach to agreements to adopt sewers at two new developments.
Sewerage companies and developers can choose to enter into an agreement whereby the sewerage company will adopt any sewers that the developer builds 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.
The water industry regulator has 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.
Ofwat has opened the case after carrying out a preliminary assessment – the regulator will now look at the information provided by United Utilities and the complainant and make a draft decision.
Both parties will then have the opportunity to respond the draft determination.
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