Water & Wastewater Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/917367
% TARGETS MET Source: Water UK WATER SEWERAGE Affinity Water 93.18% N/A Anglian Water 98.25% 99.61% Bournemouth Water 98.74% N/A Bristol Water 94.58% N/A Dee Valley Water 98.54% N/A Northumbrian Water 94.41% 99.94% Portsmouth Water 97.91% N/A Severn Trent Water 99.40% 99.81% South East Water 98.22% N/A South Staffs Water 95.45% N/A South West Water 99.04% 99.07% Southern Water 99.51% 99.64% SES Water 98.41% N/A Thames Water 97.78% 97.92% United Utilities 99.10% 99.79% Wessex Water 98.66% 97.77% Welsh Water 99.28% 99.85% Yorkshire Water 96.03% 99.57% n = Upper Quartile n = Inter Quartile n = Bottom Quartile • WATER COMPANIES' PLANS M ost of the water companies have published an initial consultation on their charging arrangements but at the time of writing (early Dec 2017), none had yet revealed the final version. They have until February 2018 to do this. David Strang of Water UK says that coming up with a schedule of fixed requisition charges has been a challenge for water companies. "Companies are having to create a whole series of fixed charges, not just for different lengths of pipe or different valves, but for different circumstances: whether the pipe is under a carriageway, whether the work requires traffic management, whether it is on contaminated ground; there are a lot of different variables. I think the bigger companies will find it easier as they will have data which they can mine to come up with robust figures, but it's a tricky job to come up with a robust figure when you don't do something very o'en." On infrastructure charges, water companies face an even bigger challenge because estimating the total amount of network enhancement, and planning this reinforcement work in a timely manner, requires them to have a clear picture of the pipeline of development in their region, says Strang. "At the moment, water companies get early contact from developers, which means a lot of information, whereas in future if the developer is just looking up the charges on their website then the water companies won't necessarily get that information. We're going to have to see exactly how that goes - I think some water companies are going to try and encourage developers to have early contact with them anyway, so they can have a better understanding of what network reinforcement might be required for a particular development." One strand of innovation that is clear from water companies' plans so far is a willingness to offer discounts on the infrastructure charge for developers who build in sustainability features, such as rainwater harvesting or sustainable drainage, in order to reduce the burden on the water or wastewater network. Other ideas that have emerged include zonal charging, where building in water-stressed areas attracts a higher infrastructure charge than in areas where water is more readily available. • WATER COMPANY DEVELOPER SERVICES PERFORMANCE 2017 (JAN-SEPT) • DEVELOPER VIEW: STEVE WIELEBSKI, SENIOR CONSULTANT, HOME BUILDERS FEDERATION "From the outset house builders welcomed the reforms introduced by Ofwat, but the current round of individual consultations (an expected 19 in all) have fallen a long way short of the initial assurances given, in particular the promise of robust evidence in support of each company's new charging arrangements. "From a house builder perspective, only three issues have ever been of concern: firstly, infrastructure charges and what they are meant to fund; secondly, the need for developer funded off-site work when such work has not been in direct consequence of new development; thirdly, why some WaSCs have difficulty (from a financial perspective) in discharging their statutory obligations under the provisions of the Water Industry Act 1991, in particular Section 94. "House builders had hoped that the new charging rules and charging arrangements would have effectively addressed these issues but as we approach the date when each company's crystallised costs must be disclosed on their respective web-sites - i.e. no later than 1st February 2018, not a single company has subjected its intended cost structure to any form of consultation. Yes, there are some indications as to what these costs might be but from the evidence gathered to date, the variability in these costs is already noticeable, largely as a result of the discretion that has been handed to companies by Ofwat. "The acid test is whether this latest ra' of reforms by Ofwat will deal with the issues raised – we have yet to be convinced that this will be the case." www.wwtonline.co.uk | WWT | JANUARY 2018 | 19