Water Charges

by Alan Hedley

Many community building management committees in Northumberland will already have noticed higher water bills from the year 2006-07. In some parts of the country there have been reports from some halls of a ten-fold increase in water charges.

Increases have resulted following a change in the way in which water companies account for surface water drainage. In the area covered by Northumbrian Water the changes apply to all business customers whose site is supplied via a meter and are being phased in between 2006-07 and 2008-09.

Since the 1999 Water Industry Act, the water companies have introduced new charging regimes for the three main elements of drainage:

(1)       foul water drainage: waste water from sinks, WCs etc

(2)       surface water drainage: rainwater run off from roofs and car parks into

           main drains

(3)       highways water drainage: a contribution towards the overall cost of

           drainage for public highways

There are two categories of users:  (a) household customers and (b) non-household customers. Category (b) which draws together business and non-business users.

For non-household customers, most charging was formerly on the basis of the rateable value of the property.  Under the new regimes, the shift has been towards charging for foul water drainage in relation to metered supply, where a meter has been fitted.  Surface water drainage has been charged by reference to the footprint of buildings and drained car parks or hard standings on a site.  This is on the basis that it more fairly reflects the relative use of the public drains.

Within Northumbrian Water’s region the chargeable area is calculated by measuring the total area of the site. If the entire site drains to Northumbrian Water’s sewage system then the whole of the area of the site will be classed as the chargeable area.  A reduction can be made if substantial areas of the occupied land does not drain to a sewage system. Examples of this are a car park constructed from permeable material or a grassed or cultivated area such as a playing field or farmland. However it should be noted that each non-connected area must be more than 10% of the total area of the site – smaller, non-connected areas cannot be added together for this purpose.

The charge is raised by reference to one of the 15 surface area charging bands, each of which covers a range of chargeable area.

 Properties which were formerly exempted in their own right from business rates, such as places of worship or properties which enjoyed relief by virtue of being charities (including village halls) are now subject to the same rates as business users, as they fall within the non-household category.

The change over is being phased over a 3 year period so that by 2010 no charity will enjoy any relief from the charges.

Understandably there has been much lobbying from national bodies representing churches and community buildings, against these charges but to no avail at this date. I do though understand that in Scotland promises have been made by the Scottish Parliament to extend exemption for churches and charities up to 2014.

Northumbrian Water have calculated the chargeable area for the majority of sites by using digital Ordnance Survey information and state that their site representatives have ensured that site boundaries have been correctly identified.

Hall management committees should be aware that the water companies’ calculations are not always accurate and it is the responsibility of the customer to demonstrate any errors on the calculations done by the water company.

United Utilities, the water company covering North West England, give the following advice to enable you to query your assessment:

“Find out where the surface water from your premises flows to and draw an accurate diagram. This must show the following:

·            roads, footpaths and neighbouring premises;

·            permeable areas such as any permanently grassed or cultivated area of playing field, farmland, racecourse, sports ground, golf course, parkland etc;

·            the boundary of your premises;

·            any nearby public sewers; and

·            where your surface water drains to.

If the charging value of your premises is over £1,000 or the site area is more than 649m2, the diagram must be drawn and certified by a qualified professional, such as an architect or a surveyor. They will also be able to help you if you are in any doubt about your site drainage.”

Examples of the surface water and highways drainage charging bands by surface area (excluding standing charges) for 2008-9: 

Northumbrian Water state that if their customers do not agree with the chargeable area that calculated for your property then you should apply to them for an application form to allow you to submit the details.

Lobbying at a national level for some relief for charities will continue.  At a local level the only immediate possibility of reduction is to check the calculated chargeable area shown on your assessment to ensure you are not being overcharged.

An reduced version of this article appeared in the August 2008 issue of CAN News.