Historically, charges for new connections have been unnecessarily complex, not wholly transparent and there has been confusion around different interpretations across the industry.
Ofwat, in line with guidance provided by Defra, have set charging rules for new connection services, that water and wastewater companies located in England must follow when setting charges for new connections.
The new rules came into effect on April 1st 2018. The changes to the charges for new connections will help improve transparency, and provide greater clarity on charging. The changes will also encourage competition within the water sector. Our charging framework has been built on Ofwat’s four guiding principles:
- Fair and affordable
- Environmental protection
- Stable and predictable
- Transparent and customer focused
The documents below contain our charging arrangements for 2018-19. Our framework provides our customers with greater predictability for water and sewerage services. The documents have been created to be used alongside the Charges for Connection Services Sector Guidance issued by Water UK.
New Connection Services Charging Arrangements 2018-2019
New Connection Services Charging Arrangements Board Assurance Statement 2018-2019
The charges and charges methodologies include any relevant miscellaneous and ancillary costs such as assessment, inspection, design, legal and supervision charges. To provide you with a complete set of information, we have included any ‘other charges’ relating to new development functions, not covered under Ofwat’s rules.
Yorkshire Water undertook a consultation on the changes to the connection charges and our proposals prior to the publication of our 2018-19 Charging Arrangements, compliant with the rules. The Water Industry Act (1991) allows water companies to recover costs from its developer customers for providing relevant infrastructure for new developments and connections to the water company’s water and sewerage network.
The charges affected by the change in the rules were:
Infrastructure Charge – a developer customer pays an infrastructure charge to us on communicating a property to our water and/or sewerage network.
Requisition Charge– this is the contribution that a developer customer may have to pay when a new water main and/or new sewer is installed by us to provide a new development with water and/or sewerage services.
Connection Charge – this is the charge that a customer pays for the actual connection to a public water main/sewer.