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Surface water drainage charges break for community groups

News Release

Ref: 224/09
Date: 28 September 2009

Scout groups, faith groups, village halls, amateur sports clubs and other community groups were today offered a reprieve from large increases in charges they face for surface water drainage, Environment Secretary Hilary Benn announced.

Environment Secretary Hilary Benn said:
“Some churches, sports clubs and youth groups have been hit by huge increases in their water bills for surface drainage.  It isn’t right.  So I can tell you today that we will legislate to allow water companies to run concessionary schemes for these organisations so they can get on with the great job they do in our communities, instead of worrying about unaffordable bills.”

Environment Minister Huw Irranca-Davies said:
“While all customers should contribute towards the cost of surface water drainage, increases in bills of several hundred percent or more are clearly unaffordable for community and voluntary groups, and we cannot be in a position where this would force them to close.

“So the Government’s new laws will allow water companies to apply concessionary charges for community organisations such as scout groups, amateur sports clubs and faith groups.

“I said recently that I was determined to fix the problem.  I am confident that this will provide a national solution that will mean a fairer deal.”

Water companies are moving towards charging non-household customers in England and Wales for surface water drainage based on the size of their premises rather than the rateable value because it is more cost reflective and provides an incentive to install sustainable drainage systems to reduce both surface water run-off and bills. 

Ofwat had advised the companies that they could not give concessionary charges to customers, including community groups, because it would be unduly preferential and unduly discriminatory.

In some regions this had led to disproportionately high bills for community organisations.  This proposed legislative change will clarify that concessionary schemes can be operated, balancing the needs of all customers.

Notes to editors

  1. Surface water drainage charges are the charges that water and sewerage companies levy for the removal and treatment of rain that falls on roofs, car parks and other non-permeable surfaces and drains into public sewers.  The cost is approximately £600million per annum.
  2. On 15 July, Huw Irranca-Davies met cubs and scouts from around the country, and pledged to help groups disproportionately affected by these charges if the water companies and Ofwat couldn’t come to an acceptable solution www.defra.gov.uk/news/2009/090714a.htm.
  3. The legislation will be brought in as part of the Flood and Water Management Bill in the next session of Parliament.  It will enable water and sewerage companies in England and Wales to operate concessionary schemes for community premises where companies switch, or have already switched, to site area charging for surface water drainage, and require Ofwat to allow companies to exercise their discretion in the design and operation of schemes.
  4. In the meantime any group or organisation who feels that their bill is wrong should contact Ofwat who have agreed to take it up with the water companies on their behalf.
  5. Four of the ten water and sewerage companies in England and Wales have switched to site area charging for surface water drainage (Northumbrian Water, Severn Trent Water, United Utilities and Yorkshire Water).
  6. Over 45,000 people have signed a No10 e-petition calling on the issue to be resolved.
  7. An example of an organisation affected is a church in Teeside that has seen its water bill from £70 to £600 because of the move to site area charging.  The Scout Association has estimated it could cost the movement £1.5million.
  8. The independent Walker Review of charging for household water and sewerage services is currently looking at issues around water affordability for household customers.  The Review’s interim report was published on 29 June and is available via the Defra web site.  The final report is expected later this year.

Further information

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Page published: 28 September 2009