Water sector regulator Ofwat has launched a new consultation on the scope and balance of developer charges and incentives.
The consultation covers the structure and scope of charges for developer services, with a particular focus on the balance of costs recovered from developers and other customers (the balance of charges) and incentives for better outcomes for the environment and society (environmental incentives).
There are separate developer services charging regimes for English companies and for Welsh companies.
It complements ongoing work on improving the cost reflectivity of new connection charges.
Launching the consultation, Ofwat commented:
“Our aim in this consultation is to make our charging rules better support our strategy and key themes or principles set out in guidance by Department for Environment, Food and Rural Affairs (Defra) and by the Welsh Government.”
In particular:
- charges that reflect costs, supporting fairness and affordability across companies’ different sets of customers;
- charges that are transparent, benefit customers and, by supporting markets, offer developers greater choice; and
- companies incentivising developers and third party providers to help meet long-term challenges, particularly through developing water efficient new homes and sites with sustainable drainage.
Deadline to submit responses to the consultation is 8 June 2021 – click here to download the consultation paper
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