Ofwat has launched a statutory consultation on changing the Wholesale Charging Rules and Charges Scheme Rules to promote greater water efficiency.

Ofwat is calling on more water companies to trial innovative ways of charging customers, to make bills more affordable and help encourage customers to use water wisely.

Ofwat has told the water companies that competition concerns should not be a barrier to greater collaboration between companies on charging for new connections, saying “it is wrong for companies to use competition law as a reason not to collaborate to the benefit of customers.”

Ofwat has published a paper setting out its expectations, assurance and information requirements for water company charges for 2020-21, including how it expects water companies to engage with customers and stakeholders when developing their charging policy and charges.

Ofwat has decided to postpone the implementation of the new charging rules framework for new connection services provided by English water companies until 2018 - some stakeholders have expressed concerns that charges are too complex, unpredictable and unfair.