This item was published during the term of a previous administration that ended in April 2007
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New regulations on water provision for developments
09/03/2006
New regulations were today laid before Parliament to clarify how costs for water infrastructure for new housing developments should be shared.
The "reasonable cost" regulations identify the contribution that Scottish Water should make towards investment in domestic water and waste water connections in new developments.
After a consultation on how water connections should be paid for, Ministers have decided that Scottish Water's share should increase.
Deputy Environment Minister Rhona Brankin said:
"Scottish Ministers are committed to a publicly owned water industry that meets the needs of consumers whilst maintaining stable charges.
"We have asked Scottish Water to deliver one of the largest investment programmes of any UK water company over the period to 2010. Our priorities for that investment programme include meeting all the anticipated demand for strategic capacity such as waste water treatment works for new housing and other economic developments.
"At the same time, it is for developers to play a key enabling role by addressing any local constraints which may arise.
"The regulations that I have put before Parliament today will give developers and Scottish Water clarity over who should pay for new local infrastructure. In addition to significant levels of direct investment in its assets, these regulations will ensure that Scottish Water makes increased contributions to local connection costs and help to ensure that new developments deliver a return on investment for both Scottish Water and developers."
Under the arrangements to fund the infrastructure needs of new development announced by Ministers in February 2005 for the period 2006-2014, Scottish Water has been required to provide sufficient strategic capacity for all estimated development while developers will be required to address any local infrastructure requirements which may arise.
The Provision of Water and Sewerage Services (Reasonable Cost) (Scotland) Regulations 2006 are expected to come into force on April 1.
The regulations will mean that, based on 2006-07 charges, Scottish Water will make contributions of up to a maximum of around £1,300 for every new water connection, and around £1,500 for every new waste water connection.