As the water networks continue to work on their pricing and offerings for the next financial year, I thought I’d offer a small insight into what is driving the conversations and how that may impact developers as of this April.
I won’t comment on individual network’s pricing structures as this will vary wildly. However, the income offset scheme which is due to finish next March has meant that any networks still running it will be reducing the amount they give back to support its phasing out.
How developers will be rewarded (or penalised) for the future water usage of their developments is of greatest interest to me at the moment. Ofwat are heavily involved in this which should mean we see some consistency between the networks. I am confident that the ‘golden number’ for clean water usage will be 100 litres per person per day and that the introduction of a tiered system similar to that used by Thames Water is likely. This will also include rewards for onsite water systems which divert surface water away from their sewers.
What is also looking a possibility are penalties for developers who are not meeting the set targets. Whereas previously you wouldn’t qualify for a discount, there is now a possibility that, as of April, your infrastructure charges will increase if you cannot prove 100lpppd.
Identifying the water fixtures and fitting to be used on a development at the application stage is something many of the developers I work with really struggle to do – there is so much more for them to be concerned about in those early stages. Moving forward, I will be having these conversations nice and early – not only to ensure that any discounts are applied but also to avoid any possible penalties.
Understanding the different ways we can save our customers time, hassle and money is what we pride ourselves on at Shadwick UC. If you would like to discuss ways your future developments could be more efficient, don’t hesitate to get in touch.