© Fair Water Connections 2020

Sector Regulation

Statutory Water Companies operating across England and Wales are regulated by Ofwat, they are also the body responsible for opening up competition in this sector. Although FWC thinks that Ofwat are, at times, slow to respond and their knowledge of connections work is limited they have, over recent years, promoted a number of initiatives.  These, which FWC has sought to influence, have materially influenced company behaviour towards water connection competition.  There is however more needing to be done before SLPs can always fairly compete with incumbent water companies. Key Regulatory Events (impacting on work in England) May 2020 - Ofwat initiate consultation on further connection charging changes. These include strengthening definitions and adding a ‘reasonableness’ test to the amounts companies can charge. April 2020 - Ofwat introduce D-MeX which assesses developer customers satisfaction with water companies.  The D-MeX framework can reward companies that perform well with up to 6% of their connections turnover or penalise poor performing companies up to 12%. April 2020 - Changes to connection charging arrangements which remove asset payments and transfers this money to discount Infrastructure Charges. April 2018 - New connection charging Rules brought into effect (these state that Infrastructure Charge monies should be used to fund any necessary network enhancements with developers directly funding site specific works less any asset payments). These Rules replace charging as defined in legislation and which require companies to set charges which broadly align with the amounts developer customers had previously being paying. November 2017 - Ofwat’s Code setting out new adoption arrangements published (note final implementation date, for water connections, is yet to be announced). For more information about costing see our costing model. Link to Costing Model  

Fair Water Connections

Seeking fairness for independent self-lay providers

Key Documents Listed below are key reference documents which impact on competitive water connection provision. (# indicates only applies to ‘English Companies’). Ofwat Connection Charging Rules # Ofwat Charging Scheme Rules (covers some aspects of Infrastructure Charges) # Ofwat Adoptions Code # Water Industry Ac 1991 (subsequent legislation largely modifies the WIA 91). Ofwat Information Notes IN19/05 - Expectations relating to connection charge setting in 2020/1 # Note - charges in ‘Welsh Companies’ set in accordance with Water Industry Act legislation.
© Copyright FWC 2020

Sector Regulation

Statutory Water Companies operating across England and Wales are regulated by Ofwat, they are also the body responsible for opening up competition in this sector. Although FWC thinks that Ofwat are, at times, slow to respond and their knowledge of connections work is limited they have, over recent years, promoted a number of initiatives.  These, which FWC has sought to influence, have materially influenced company behaviour towards water connection competition.  There is however more needing to be done before SLPs can always fairly compete with incumbent water companies. Key Regulatory Events  (impacting on work in England) May 2020 - Ofwat initiate consultation on further connection charging changes. These include strengthening definitions and adding a ‘reasonableness’ test to the amounts companies can charge. April 2020 - Ofwat introduce D- MeX which assesses developer customers satisfaction with water companies.  The D-MeX framework can reward companies that perform well with up to 6% of their connections turnover or penalise poor performing companies up to 12%. April 2020 - Changes to connection charging arrangements which remove asset payments and transfers this money to discount Infrastructure Charges. April 2018 - New connection charging Rules brought into effect (these state that Infrastructure Charge monies should be used to fund any necessary network enhancements with developers directly funding site specific works less any asset payments). These Rules replace charging as defined in legislation and which require companies to set charges which broadly align with the amounts developer customers had previously being paying. November 2017 - Ofwat’s Code setting out new adoption arrangements published (note final implementation date, for water connections, is yet to be announced). For more information about costing see our costing model. Link to Costing Model  
Key Documents Listed below are key reference documents which impact on competitive water connection provision. (# indicates only applies to ‘English Companies’). Ofwat Connection Charging Rules # Ofwat Charging Scheme Rules (covers some aspects of Infrastructure Charges) # Ofwat Adoptions Code # Water Industry Ac 1991 (subsequent legislation largely modifies the WIA 91). Ofwat Information Notes IN19/05 - Expectations relating to connection charge setting in 2020/1 # Note - charges in ‘Welsh Companies’ set in accordance with Water Industry Act legislation.
Seeking fairness for independent self-lay providers