The water or sanitation company may require that an amount be deposited as collateral before the relocation operations are carried out. The water or sanitation company must pay interest on an amount held as collateral of 50p or more that it holds for at least three months. A water or sanitation company can increase infrastructure charges when the premises are connected for the first time. Infrastructure charges contribute to the cost of improving and developing the water or sanitation company`s network to enable it to cover the overall increase in demand through new connections. The water company will charge the owner of the land for the work. When the water pipe, public sewers or other related infrastructure is built in accordance with the agreement, the water or sanitation company must take over the infrastructure on the agreed date. The person who builds the water main, public sewers or other related infrastructure is the person who pays for the costs. However, for self-installed water pipes, the water company must pay the person an «asset payment», i.e. the lower return product of the account payers that must be connected to that water line of these premises, or the costs that the water company believes it must inculach for the supply of the water line on a hypothetical credit basis for a period of time.
For requirements for which the water or sanitation company believes that the developer must pay a sum for the costs of the work (the developer`s contribution), it may require that an amount be deposited as collateral before starting the work. The company should not charge more than the developer`s estimated contribution. The amount requested as collateral should not exceed the estimated total cost of the work. The water company must pay interest on any amount held as collateral of 50p or more that it holds for at least three months. Interest must be paid at the deposit rate. Borrowing rate for water companies – TR% – 1.75% A retention agreement between the water company and the person who builds or proposes the water pipe and other related infrastructure. A person who builds or proposes a new public channel and other related infrastructure must enter into an adoption agreement with the wastewater treatment company, which operates entirely or primarily in Wales. When calculating royalties for requirements or self-elimination, the water or sanitation company calculates the levy as if it had borrowed the money (a hypothetical loan) to enable it to carry out the work. This means that the levy includes both the cost of labour capital and interest. For borrowing, we add a margin to the reference rate (the average GIR applicable to the next 0.25%) is rounded. reflect the additional borrowing costs for water companies. These margins are currently 1.75 and 1.5 percentage points for water and sanitation companies.
A person who needs a water pipe or public channel to provide water or drainage to his premises may request the provision of a water line or public channel (a «requirement») of a water distribution company. In some circumstances, other infrastructure may be required to allow for supply or drainage. Water companies may charge the reasonable costs they must incur for the supply of water or public sewers and some other infrastructure. Another person may decide to install the water main, public sewers or other related infrastructure («self-pose») on their own. This usually involves the use of accredited contractors. Some royalties are calculated as if the water or sanitation company had borrowed the money needed to carry out the work («hypothetical loan base»).