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Paying for Water Services 2006-2010

ANNEX A: SURFACE DRAINAGE

The ten water companies in England and Wales take various approaches to charging non-domestic customers for surface and highway drainage. In broad terms, the methods practised are:

• fixed charge
• volumetric charge
• charge based on rateable value
• banded charge based on the surface area of property

Surface and highway drainage are generally dealt with in the same manner; that is, whichever method of charging is used applies to both the surface and highway drainage charges.

Companies sometimes use a different method of charging for these services depending on whether properties are metered or non-metered, household or non-household. The following comments relate to charges for non-household premises.

1) Fixed charge

Under this approach, a charge is applied to properties at a flat rate, regardless of the area drained, the rateable value of the property or the estimated volume of water drained on behalf of the property (examples: Anglian, Northumbrian, Southern).

2) Volumetric charge

Under this approach, the charge forms part of the sewerage charge, where that charge reflects the volume of wastewater that a property is estimated to discharge to the sewer (examples: Dwr Cymru, South West).

3) Charge based on rateable value

Under this approach, the charge is based on the rateable value of the property served, without reference to the area drained or the estimated volume of water drained (examples: Severn Trent, United Utilities).

4) Charge based on banding by surface area of property

Under this approach, properties are banded by reference to the amount of their surface area that is drained to the sewer, and are charged on the basis of the band in which they are placed (example: Yorkshire).

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