Self Lay
Applying for New Water Mains – “Requisitioning"
Requests made for new mains to supply water for domestic purposes to any premises is termed "Requisitioning", and is usually made if the site does not have access to a public water supply or if the capacity of the existing water mains is inadequate.
Who is Responsible?
We are responsible for all water mains that are laid in the highway, including service strips, which have been or will be adopted by the Local Authority. Where new roads are created and they remain in the ownership of the developer or subsequent owners, easements will have to be requested at the developer's expense. We will generally process easements by using an Industry Standard Deed of Easement that we require you to enter into. Use of Standard deed will be at a cost of £1,000. It is suggested that you forward the deed to your solicitors for their reference. Should your solicitors require alterations or amendments to this deed it will result in further charges dependent upon the level of negotiation required, to a maximum of £3,000.
What is Self Lay?
This is where a developer can choose to lay their own water mains and service pipes or engage a contractor to do so rather than request that the appointed water company carries out the work. produced the following framework. Please see Competition in providing new water mains and service pipes: Guidance to water companies for more information which has been produced by the Water Industry's Regulator, Ofwat.
Paying for New Water Mains
Developers have the following 3 payment options available to them when requisitioning new mains.
Option 1 - Relevant Deficit Payments
Where developers requisition new mains for domestic purposes under sections 41 and 44 of the Water Industry Act 1991, they may pay for these over 12 years. The payments are calculated under section 43 of the Act. For this option the water undertaker can require a security deposit, Ofwat guides that this deposit should be no more than 100% of the estimated commuted sum figure. The deposit must be returned (with interest payable at the rate prescribed by Ofwat) by the water undertaker when the relevant deficit becomes zero and will remain zero.
Option 2 - Commuted Sum Payment
A single statutory payment for the requisitioned water mains can be made as an alternative to Option 1 and the need to enter into an agreement over a 12 year period. The calculation uses the discounted aggregate deficit method to calculate a single finalised payment.
Option 3 - Self Lay Payment
Where developers, or their contractors, install new water mains and service pipes instead of the water undertaker, the undertaker is required to make an asset payment upon adoption of the mains. The payment is made by the water undertaker to the developer or his contractor in recognition of the future revenue that is payable for supplies of water to customers connected to the newly constructed main. The payment is calculated as the sum of the estimated offsets for each of the 12 years following the adoption of the main, in each case discounted to a net present value. For this option the developer will need to privately agree costs with a suitable Self Lay Organisation and pay for the water undertakers non-contestable costs in providing the new mains.
If you decide to choose the Self-Construction option, the appointed SLO will need to contact us in order for the Undertaker’s costs to be agreed. The Company will work closely with Developers who are considering laying water mains as part of a multi-utility programme.
Where Can I get More Information on Self Lay?
A water Industry Code of Practice has been produced as a guidance document that covers the provision of water infrastructure for housing and industry development in England and Wales.
You can find out how to get a copy of the Code by using the following link: http://www.wrcplc.co.uk/selflay/
Water suppliers then produce their own Company specific addendum to the Code detailing any relevant requirements or procedures. You can download a copy of our Self Lay Addendum here| and view an example of the Self Lay Legal Agreement here.|
Applicant should apply in writing to:
Developer Services Manager, at the below address.
Developer Services Unit South Staffordshire Water PLC Green Lane, Walsall. WS2 7PD