Ofwat consults on the scope and balance of developer charges and incentives


Ofwat seeks views on the structure and scope of charges for developer services, particularly 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).

According to the water regulator, this consultation complements ongoing work on improving the cost reflectivity of new connection charges.

The aim of this consultation is to make Ofwat’s charging rules support their 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.

This consultation accepts feedback until 8th of June 2021.

More information about this consultation and how to take part is available on the Ofwat website.