Ofwat confirms common framework for green incentives for new developments

From 1 April 2025, an Environmental Incentives Common Framework (EICF) will take effect in England, bringing some consistency to the availability of green rewards for new developments.

Following a July consultation, Ofwat has concluded: 

• All English water companies are to offer at least one incentive for achieving water efficiency above the mandatory level (110 litres per person per day, as set out in Building Regulations). 

• Water efficiency will be measured using the fixtures and fittings approach set out in the Building Regulations, which takes as its reference point the capacity or flow rate of different fittings. Ofwat is consulting until 11 November on the final details of this, as shown in the table. It said it is mindful of incoming Building Regulation changes and the introduction of a mandatory water efficiency label, and would consider the impact of those in due course.

• Companies may also choose to offer bespoke incentives relating to water efficiency and/or sustainable drainage which use alternative approaches to meeting relevant qualifying criteria. 

• Water companies are to publish processes for paying incentives and gaining compliance. 

• Incentive earning properties may be audited.

Ofwat also sought views by 11 November on its intention to allow water companies to offer environmental incentives for non-household properties that comply with the EICF, and levy the environmental component on eligible properties.

It is consulting separately on the changes to its New Connection Charging Rules, required to enact the EICF.