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Infrastructure charges scheme 2017-18

Southern Water Infrastructure Charges Scheme 2017-18 Part 1 Introduction and Commencement... 3 Part 2 Infrastructure Charges... 4 1 Interpretation... 4 2 Charges... 5 3 Time for Payment... 5 4 Persons Chargeable... 6 5 Recalculation of Charges... 6 6 Relevant Multiplier... 6 Part 3 Interpretation and Supplemental Provisions... 8 1 Interpretation... 8 2 Legislation... 8 3 Value Added Tax... 8 4 Customer Information... 8 Part 4 Schedule of Charges 2017-18... 10 2 Southern Water Infrastructure Charges Scheme 2017-18

Part 1 Introduction and Commencement 1. This Charges Scheme is made by Southern Water under Section 143 of the Water Industry Act 1991 and shall come into operation from 1 April 2017 to 31 March 2018 inclusive. 2. This Charges Scheme shall apply in those areas and to those premises for which the Company is, or is deemed to be, the appointed water and/or sewerage undertaker. 3. The amounts now fixed by the Company in respect of the charges provided for in this Charges Scheme are those shown in the Schedule. 4. The Southern Water General Charges Scheme 2016-17 is hereby revoked with effect from 1 April 2017, without prejudice to the recovery of charges due in accordance with that and other revoked Charges Schemes. [Note: Charges for water services are principally provided for in the Southern Water Services Limited Household Premises Charges Scheme 2017-18, the Southern Water Services Limited UMP Charges Scheme 2017-18, the Southern Water Services Limited (South East Water CMP) Charges Scheme 2017-18, and the Southern Water Services Wholesale Statement of Principles and Charges 2017-18. Other charges are fixed separately for matters such as the reception of liquid wastes and water supply connection costs. Information on these other charges can be viewed on our website https://www.southernwater.co.uk/information-leaflets.] 3 Southern Water Infrastructure Charges Scheme 2017-18

Part 2 Infrastructure Charges 1 Interpretation In this Part, "water connection" means connection, either directly or through an intermediate pipe, to a water supply of premises which have never at any previous time been connected to a supply of water provided for domestic purposes by the Company or by any other authority or body which at that time provided supplies of water in the course of carrying out functions under any enactment; "water infrastructure charge" means the charge for water connection; "sewerage connection" means connection, either directly or through an intermediate sewer or drain, to a public sewer of premises which have never at any previous time been connected to a sewer used for the drainage for domestic purposes of those premises by the Company or by any other authority or body which at that time provided sewerage services in the course of carrying out functions under any enactment; "sewerage infrastructure charge" means the charge for sewerage connection; "premises" includes any building or substantial part of a building, and any part of a building when it is, or is designed, altered or intended to be, occupied as a separate unit; "house" means any building or part of a building which is occupied as a private dwelling house or which, if unoccupied, is likely to be so occupied and, accordingly, includes a flat; "common billing agreement" means an agreement between the Company and any other person under which that person has undertaken to pay charges for water supply or sewerage services, or both, in respect of two or more houses which have a common private service pipe and which, in any case where that agreement relates to one of those services only, are also subject to a similar agreement for common billing between that person and the undertaker providing the other service; "relevant multiplier" means a number (which may be one or more or less than one) calculated in the manner set out in paragraph 6. For the avoidance of doubt, "water connection" and "sewerage connection" include any relevant connection made without the authorisation or knowledge of the Company, without prejudice to any rights of the Company in respect of any unauthorised connection. 4 Southern Water Infrastructure Charges Scheme 2017-18

2 Charges 2.1 The standard amounts of the water and sewerage infrastructure charges payable for water and sewerage connections shall be specified by the Company. 2.2 Subject to the following paragraphs of this Part, the water infrastructure charge payable for a water connection shall be the standard water infrastructure charge, and the sewerage infrastructure charge payable for a sewerage connection shall be the standard sewerage infrastructure charge. 2.3 In the case of (i) premises which consist in a house subject to a common billing agreement, or (ii) premises which do not consist in a house or houses and to which water is provided by a service pipe with an internal diameter larger than 20mm, the standard water and sewerage infrastructure charges shall be multiplied by the relevant multiplier for those premises. 3 Time for Payment 3.1 Subject to the next following paragraph, the water or sewerage infrastructure charge, as the case may be, shall be due and immediately payable to the Company at the time the relevant connection is made. 3.2 In the case of the water connection or sewerage connection of a building or part of a building which is occupied as a dwelling house immediately before the connection is made, (i) the relevant charge shall be paid in full, within a reasonable period specified by the Company after the connection in respect of which the charge payable is made, or, (ii) at the option of the person liable to pay the relevant charges, an amount equal to the instalment amount shall be paid in each of the twelve years following the relevant connection being made, subject only to that person giving such undertakings to that effect as the Company may reasonably require. 3.3 In paragraph 3.2 above, "the instalment amount" means the aggregate amount which would fall to be paid in the relevant year by way of payments of interest and repayments of capital if an amount equal to the water infrastructure charge or, as the case may be, the sewerage infrastructure charge payable for the relevant connection had been borrowed by the Company on terms (i) requiring interest to be paid and capital to be repaid in twelve equal annual instalments, and (ii) providing for the amount of the interest to be calculated at such rate, and in accordance with such other provision, as may have been determined either by the Company with the approval of the Water Services Regulation Authority or, in default of such a determination, by the Water Services Regulation Authority. 5 Southern Water Infrastructure Charges Scheme 2017-18

4 Persons Chargeable The person liable to pay the water infrastructure charge or the sewerage infrastructure charge shall be (i) the person requesting the relevant connection to be made, the person making the relevant connection (other than on behalf of the Company) or the person on whose behalf the relevant connection was requested or made, or (ii) if the relevant connection is made without authorisation by the Company, the person making such connection, the person on whose behalf the relevant connection was made or the person using the services provided thereby. 5 Recalculation of Charges Where (i) a person who has received a demand, or undertaken, to pay water and/or sewerage infrastructure charges in respect of two or more houses subject to a common billing agreement fails to pay them, or any part of them, within 14 days of the date of connection, or (ii) a common billing agreement is terminated otherwise than in accordance with its terms by the person who has undertaken to pay charges under it, the Company may demand and recover from that person, or from the occupier of each house subject to the agreement, standard water and/or sewerage infrastructure charges in respect of each house. 6 Relevant Multiplier 6.1 To calculate the relevant multiplier for a house to which sub-paragraph 2.3 applies, (i) ascertain in respect of all the houses subject to the common billing agreement in question (e.g. all the flats in a block to which such an agreement applies) and all communal facilities shared by all or any of them, the total number of water fittings in all the categories specified in column 1 of the Table below; (ii) calculate by reference to column 2 of the Table the aggregate loading units attributable to that total number of water fittings (and increase the aggregate, where necessary, to take account of the minimum for domestic appliances); (iii) divide that number of loading units by 24 and divide the resulting figure by the number of houses subject to the common billing agreement; (iv) the resulting number will be the relevant multiplier. 6.2 To calculate the relevant multiplier for other premises to which sub-paragraph 2.3 applies (i) ascertain in respect of the premises the total number of water fittings in all the categories specified in column 1 of the Table below; (ii) calculate by reference to column 2 of the Table the aggregate loading units attributable to that total number of water fittings; (iii) divide the aggregate loading units by 24; the resulting number will be the relevant multiplier, provided that if the resulting number is less than 1, the relevant multiplier will be 1. 6 Southern Water Infrastructure Charges Scheme 2017-18

Column 1 Water fitting (note 1) WC flushing cistern 2 Wash basin in a house 1.5 Wash basin elsewhere 3 Bath (tap nominal size 3/4in/20mm) (note 2) 10 Bath (tap nominal size larger than 3/4in/20mm)(note 2) Shower 22 Sink (tap nominal size 1/2in/15mm) 3 Sink (tap nominal size larger than 1/2in/15mm) 3 Spray tap 5 Bidet 0.5 Domestic appliance (subject to a minimum of 6 loading units per 1.5 house - notes 3 and 4) 3 Communal or commercial appliance (note 3) Any other water fitting or outlet (including a tap - but excluding a 10 urinal or water softener) 3 Column 2 Loading Units Notes to be read with the Table: 1. Reference to any fitting includes reference to any plumbing, outlet, dedicated space or planning or other provision for that fitting. 2. "Bath" includes a whirlpool bath and a jacuzzi. 3. "Domestic appliance" means an appliance (including a dishwasher, a washing machine and waste disposal unit) in a house and "communal or commercial appliance" means an appliance (including a dishwasher, a washing machine and a waste disposal unit) elsewhere than in a house (including in communal facilities). 4. In any calculation under paragraph 6.1, a minimum of six loading units shall be included, in respect of each house, for domestic appliances (whether or not the house has any such appliances) except, in the case of any house, where neither a washing machine nor a dishwasher can be provided (and there is not plumbing, outlet, dedicated space or planning or other provision for either appliance) in the house. 5. In the case of any premises with a sewerage only connection and no water fittings, the relevant multiplier will be one. 7 Southern Water Infrastructure Charges Scheme 2017-18

Part 3 Interpretation and Supplemental Provisions 1 Interpretation 1.1 In this Charges Scheme, "the Company" means Southern Water Services Limited 1.2 Reference herein to a Part or paragraph is a reference to that Part or paragraph of this Charges Scheme. 1.3 Reference herein to a Section is a reference to that section of the Water Industry Act 1991, unless the reference expressly provides otherwise. 1.4 Without prejudice to the foregoing, the Interpretation Act 1978 shall apply to this Charges Scheme as it applies to an Act of Parliament, and words used shall bear any meaning ascribed to them by the Water Industry Act 1991, unless the context otherwise requires. 2 Legislation The application, assessment and recovery of charges under this Charges Scheme are subject to the provisions of relevant Acts of Parliament and subordinate legislation made or issued thereunder; the provisions of this Scheme shall be construed so as not to conflict therewith. 3 Value Added Tax Water services charges are within the scope of VAT. The charges in the Schedule are shown exclusive of VAT, which will be charged in addition if applicable. Note: At the time of the making of this Charges Scheme, water supplies to premises engaged in economic activities within Sections C to F inclusive of the Standard Industrial Classification of Economic Activities 1992 are standard-rated; other charges in the Schedule are noted as potentially subject to VAT by way of guidance only. 4 Customer Information 4.1 In the event that a consumer has any complaint about the Company s application of this Charges Scheme to the supply of services to his property, the Company will deal with such complaint in accordance with the Complaints Procedure agreed with the Water Services Regulation Authority. The complaint will be dealt with at an appropriate level in the Company and, if the consumer remains dissatisfied, he may refer the matter to the Consumer Council for Water Southern, whose contact details are provided in paragraph 4.2. Further information will be provided on request. Under the Water Industry Act 1991 and The Water (Meters) Regulations 1988, some complaints can be referred to an independent arbitrator. Details of this process can be obtained by contacting the company in accordance with paragraph 4.2. 4.2 Any request for information must be made to the Company at the telephone number or address specified by it for the purpose. Note: At the time of the making of this Charges Scheme, the contact details are as follows:- By phone: 8 Southern Water Infrastructure Charges Scheme 2017-18

General charges enquiries and requests for information 0330 303 0277 Enquiries concerning water and wastewater services 0330 303 0368 Online: Forms are available on the Company s website www.southernwater.co.uk By post: Customer Services Centre Southern Water PO Box 41 Worthing BN13 3NZ Consumer Council for Water London & South East By post: Consumer Council for Water - London & South East Region c/o 1 st Floor Victoria Square House Victoria Square Birmingham B2 4AJ By phone: 020 7931 8502 Fax: 0121 345 1010 Email: londonandsoutheast@ccwater.org.uk Online: www.ccwater.org.uk 9 Southern Water Infrastructure Charges Scheme 2017-18

Part 4 Schedule of Charges 2017-18 Charges are shown exclusive of VAT where this is payable INFRASTRUCTURE CHARGES 1. Standard water infrastructure charge 365.40 2. Standard sewerage infrastructure charge 365.40 10 Southern Water Infrastructure Charges Scheme 2017-18