Ofwat publishes revised Code for Adoption Agreements
Last
month, the Water Services Regulation Authority (“Ofwat”), published a revised
version of the Code for Adoption Agreements (the “Code”).
Adoption
agreements are those that developers enter into when they want an appointed
water/sewerage company to take over responsibility for the infrastructure they
have constructed.
The
Code is required to be issued by the Water Industry Act 1991 (as amended by the
Water Act 2014) and requires companies to develop, agree and maintain:
·
sector
guidance; and
·
model
adoption agreements;
reflecting overarching principles set out in the
Code.
The Code required companies to submit to Ofwat for
its approval, water sector guidance and a model water adoption agreement by 1
October 2018.
At
the industry’s request, Ofwat has now amended the Code to change this deadline
from 1 October 2018 to 7 January 2019 allowing water companies additional time
to engage and consult with customers on the documents.
Ofwat
expects to review and approve these documents by 1 April 2019, with plans for
them to come into effect from July 2019.
The
deadline for water companies to submit similar documents in relation to
sewerage (1 April 2019) has not been extended. Ofwat expects to approve the
sewerage sector guidance document and model sewerage adoption agreement by 31
July 2019 with plans for them to come into effect from October 2019.
Watch this space for further developments.
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