Ofwat consults on new approach to charging for connections

Ofwat has opened a consultation on a new approach to connections charging that the regulator had said will bring on charges that are "clearer, more predictable and stable" for developers and provide them with early measures of their connection costs.

The new approach will apply to companies wholly or mainly in England and will include among its benefits charges tailored to the developers' needs and greater fairness. Ofwat said the proposed charging regime will ensure they developers do not pay for pre-existing issues and only pay on a pro-rata basis for assets that benefit a wider set of customers

Other customers will benefit from lower developers' costs and incentives for low consumption, said Ofwat.

The current proposals were, Ofwat said, built on those it made in March in New connections charging – emerging thinking for discussion. Stakeholders. Ofwat said then that it was concerned that charges were too complex, unpredictable and unfair.

Defra is expect to publish more detailed guidance on new connections charges in autumn 2016.