Water industry regulator Ofwat decided in favour of Bristol Water in a complaint about the reasonableness of connection costs.
The dispute was referred to Ofwat for determination under sections 45 of the Water Industry Act 1991.The Complainant disputed the amount Bristol Water had charged them for providing a new water supply to a residential premises.
The regulator’s final decision says that the actual costs for a standard single connection were reasonably incurred by Bristol Water. The cost of £199.22 were under the minimum charge which Ofwat would expect is reasonable for this type of work.
Ofwat also considered that the administrative fees and overheads charge of £105 were reasonable. The regulator concluded that there was no refund due to the complainant.
Ofwat used the Hyder Report and the independent review of section 45 administration fee and overhead costs to inform its consideration of whether companies’ costs for providing a new water supply are reasonably incurred.
The figures included in both of the reports are benchmarks, not suggested charges - the costs companies actually incur may reasonably be higher or lower than these benchmarks.
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