This charging guidance to Ofwat (The Water Services Regulation Authority) establishes the policy framework within which Ofwat sets charging rules for the water industry. Its purpose is to make sure that Ofwat’s Charging Rules reflect the government’s policy priorities for the water sector.
The charging guidance covers the charges incumbent undertakers set for customers as well as those for other businesses that use the network. These include licensees, inset appointees, self-lay operators and developers. It also covers the retail charges that may be levied by water supply and sewerage licensees.
The supplementary guidance sets out principles for Ofwat when setting the charging rules for water and sewerage connection charges.