National licensing for New Appointments would support growth, report finds

The Government should consult on the introduction of national licensing for New Appointments and Variations (NAVs), as part of a package of reforms to accelerate infrastructure development in the UK. 

That's according to a new report from the Social Market Foundation (SMF), commissioned by the Independent Networks Association, which has found outdated regulations are constraining development. It championed changes, including:

• National licensing for NAVs, as the requirement to apply on a site-by-site basis causes delays.

• Clear, industry-wide bulk supply charging calculations from Ofwat, as inconsistency hinders market entry. 

• The merging of water zones where these are served by the same water source, because the Drinking Water Inspectorate’s site-by-site regulation adds unnecessary costs.

• Requirements for NAVs to follow the social tariff regime of the regional incumbent, to ensure a fair deal for all customers. 

The SMF highlighted the NAV market has seen “staggering” growth in recent years, and now connects a fifth of all new homes to the water supply. It said more NAVs were appointed in the first quarter of 2025 than in total before 2020, and that NAVs install infrastructure 25-50% faster than incumbents, supporting housing targets and growth.