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EXPLANATORY NOTE

(This note is not part of the Regulations)

These regulations set out matters which must be included within a water or sewerage undertaker’s charges scheme under the Water and Sewerage Services (NI) Order 2006. Under that Order water and sewerage undertakers (who are responsible for the delivery of water and sewerage services) are entitled to make charges for the delivery of water and sewerage services. Article 201 of that Order requires the undertaker to provide an annual charges scheme setting out the charges to be paid by consumers. Article 202 of the Order allows the Department for Regional Development to stipulate, through regulations, certain matters that must be included in an undertaker’s charges scheme. Accordingly, these regulations specify that certain categories of consumer are to be charged an affordability tariff and that an allowance for assistance for the cost of making new connections to the water and sewerage network is to be available in certain circumstances.

Regulation 2 defines certain terms used in the regulations.

Regulation 3 stipulates that an undertaker’s charges scheme must include arrangements for providing assistance to qualifying consumers in the form of an affordability tariff and under regulation 7 (Requisitions and adoptions of water mains or sewers for existing dwellings) . Paragraphs 2 and 3 define the categories of consumer eligible to be charged the affordability tariffs (“qualifying consumers”).

Regulation 4 sets out how the affordability tariffs are calculated in relation to both the provision of water and sewerage services. The formula at regulation 4(3) converts the weekly “guaranteed figure” (based on the single persons pension guarantee) referred to at Regulation 4(4) to an annual figure, calculates 3% of that figure and apportions the result equally between the water and sewerage affordability tariffs. A qualifying consumer must be charged the relevant affordability tariff where they receive either a supply of water or are provided with sewerage services, but not both. An adjusted affordability tariff must also be charged if a qualifying consumer occupies a dwelling with a capital value of £100,000 or less.

Regulation 5 specifies the period of a qualifying consumer’s entitlement to be charged any affordability tariff.

Regulation 6 sets out the circumstances under which the undertaker can charge a qualifying consumer by reference to volume. Paragraph 2 states that the undertaker shall fix charges by reference to volume where the charges are lower than the relevant affordability tariffs.

Regulation 7 states that where an undertaker is required to make a requisition to the water or sewerage network for dwellings constructed prior to 1st January 2000, these requisitions will be subject to an allowance to be set out by the Department in a Charges Scheme.

Regulation 8 requires the Department to make a grant to the relevant undertaker equal to the amount of revenue lost due to charging the affordability tariffs for the supply of water and provision of sewerage services. The Department is also required to make a grant equal to the total of all allowances provided by the undertaker under regulation 7.