Ofwat has launched a statutory consultation on changing the Wholesale Charging Rules and Charges Scheme Rules to promote greater water efficiency.
In the consultation the regulator is proposing small changes to its Wholesale Charging Rules to promote greater consideration of water scarcity and efficiency when setting wholesale charges.
The changes correspond to the conclusions set out in Ofwat’s May 2026 conclusions on promoting water efficiency in wholesale charges for business users. The water sector is also proposing the same changes to the Charges Scheme Rules, to retain alignment with Wholesale Charging rules.
Ofwat has proposed the following amendments:
- to clarify that long run costs include those associated with addressing water scarcity, and
- to allow differences in charging to be based on incentives to promote water efficiency and the associated environmental and wider societal benefits.
The amendments would apply from April 2027.
Closing date for the consultation is 30 July 2026 – interested stakeholders are asked to submit their responses via email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or if they wish to discuss any aspect of the consultation, or to arrange a conversation on the issues raised.
Click here to read the consultation documents and submit a response
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