Building and Developing

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New connections charging

New connection charges

Welcome to Severn Trent’s new connections charges.   

Our charges have been designed in line with the charging rules introduced by Ofwat in 2018, ensuring our developer customers experience greater simplicity and predictability than in prior years.

We’ve built our new connections charges with four principles in mind:

Providing stable and predictable charges

We recognise that our developers’ value stable and predictable charges so throughout our Charging Arrangement Document we have published, where applicable and appropriate, fixed charges for water and sewer connections which should allow a developer to work out a reasonable estimate of what they will pay. We also take all reasonable steps to ensure that the value of our charges do not fluctuate year on year.

Ensuring transparent and customer focused charging

We’ve published, where possible, fixed charges and defined both how we’ve calculated our charges and how we will apply our charges for activities required on site, enabling our developers to make a reasonable estimate of what they will pay for water and sewer connections. We have also included all charges that could be paid within our Charging Arrangement document to ensure we are completely transparent with no surprises. 

Ensuring fairness and affordability

To ensure all developers get a fair deal, both now and in the future we’ve developed our charges so that they do not discriminate between our different developer customers - Self-Lay Providers (SLPs), New Appointments and Variations (NAVs), national developers, smaller house builders and individual customers. Our new connections charges apply to all our developer customers, regardless of the number of properties connected to our network. We’ve engaged with our different types of customers to ensure market acceptability for our proposed charges.

Providing environmental protection

Our infrastructure discount scheme encourages developers to build sustainable properties which save water usage and reduce the amount of surface water going into the public sewer reducing the risk of flooding. If you would like to find out more about our infrastructure discount scheme please click here.

If you’d like to find out more about new connections charging and the changes brought about by Ofwat’s principles-based rules take a look at Ofwat’s website.

Our 2019/2020 charges

We’ve reviewed each of our new connections charges and you can find more information in our latest Charging Arrangement Document (PDF). Throughout our Charging Arrangement Document the term “developer” refers to all of our customers who are building and developing properties. When reviewing these charges we’ve maintained the balance of charges between our developer customers and other customers, such as our household bill payers. Our Charging Arrangement Document not only tells you about our 2019/2020 new connections charges, but also about the process you need to follow to get a new connection onto Severn Trent’s water and/or sewer network - helping you to make an informed choice as to who does the connection work. We’ve recently received customer feedback which asked for further information on protective pipework, so we’ve created a document that explains our protective pipework charges for new mains requisitions.

 

Changes to income offset and asset payments

On 1 April 2020, we will make some changes to the income offset and asset payment parts of our charges. These adjustments ensure we are in line with changes that Ofwat have made to industry regulations.

For more information, you can download and read the new rules around charging for new connections, and you can read through Ofwat’s decision document.

These changes impact both water and waste services and impact all customers including builders, developers, Self Lay Providers (SLPs) and New Appointments and Variations (NAVs).

What is changing

From April 2020 we will no longer make asset payments for mains requisition schemes laid by Self Lay Providers.

The income offset, which is currently applied against mains and sewer schemes, will be applied against our infrastructure charges instead.

New Appointments and Variations will receive income offset against infrastructure charges from 2020, rather than against their bulk supply agreement.

Getting your feedback on the changes

We’re holding a series of meetings and workshops to share the changes in greater detail.

We will be running:

  • Developer workshop on Thursday 25 July 2019
  • Home Builder Federation meeting on Thursday 1 August 2019
  • Self-lay forum on Tuesday 20 August 2019
  • Developer workshop 2 on Thursday 19 September
  • Developer workshop 3 - date to be confirmed
  • New Appointments and Variations session - date to be confirmed
  • Consumer Council for Water session on Friday 27 September 2019
  • Fair Water Connections meeting - date to be confirmed

During those sessions, we’ll explain our proposals for how we’ll apply the changes.

If you’re interested in coming to any of the workshops, please get in touch with your usual point of contact in any of our teams, and we’ll make sure you get an invite.
We’ve also put together a short survey about these changes and our charges in general, we’d love to hear your views, so please get in touch to give us your feedback on the proposed changes.

Working in partnership

While we were reviewing our new connections charging framework we worked closely with Water UK and consulted with developers, self lay providers (SLPs) and New Appointment & Variation (NAVs), along with their trade bodies and representatives, as it was important to hear what our customers thought about our proposals. Alongside this, our new charging framework has been through a rigorous assurance process and we have provided the Water Services Regulation Authority with an assurance statement (PDF) and statement of significant changes (PDF) from our Board of Directors.

Our 2018/2019 charges

We are required to publish our new connections charges by 1 February ready to come into effect on 1 April therefore the information above relates to our 2019/2020 charges. If you’d like to see our 2018/2019 new connections charges (which are still in use until 31 March 2019) or the supporting assurance statement from our Board of Directors please click on the links below.

2018/2019 New Connections Charging Arrangement

2018/2019 Board Assurance Statement

                                                                                 Any questions

If you have any questions about our new connections charging framework, please call our developer services team on

0800 707 6600 – they’re ready to take your call Monday – Thursday 08:30 – 17:00 and Friday 08:30 – 16:30