Ofwat opens consultation to address poor consistency in new connection charging

Ofwat, following industry feedback, has concluded that its 2018 rules relating to charging for new connection services were inconsistent and has opened a consultation on those shortfalls.

In its consultation document Ofwat said it was concerned that differences between companies in their charges were wide and “could not be explained simply by differences in companies’ costs.”

The regulator also noted imbalances between flexibility and consistency that often created “an unnecessary administrative burden for developers who may work in more than one water company’s area”. This, it said, was a particular problem for self-lay providers (SLPs) and new appointees (NAVs).

And Ofwat highlighted “a lack of clarity around what charges apply in which context. We also found that companies use different terminology to refer to the same services.”

The deadline for views is 16 September 2020