Industrial

GUIDANCE FOR THE PROVISION OF NEW WATER AND SEWERAGE SERVICES IN RESPECT OF INDUSTRIAL PROCESSES

This page is intended as a guide for those seeking:

· a new water supply connection to feed an industrial process; and/or

· a new sewerage connection to deal with effluent produced as part of an industrial

process.

Within this page, we refer to these connection as “non-domestic connections” and the actual premises as either “household” or “non‑household”. This is because there are many offices and commercial premises that are non-domestic in the sense that they are not household premises, but have connections for domestic purposes, i.e. for supplying water for drinking and washing and for draining sanitary appliances like toilets and sinks.

The information given here is advisory only and if there is any conflict or inconsistency between them and any of Anglian Water’s suite of wholesale charging documents, the latter prevail.

Funding for the provision of non-domestic connections differs from the funding arrangements for the provision of connections for domestic purposes, whether to household premises or non-household premises. The main difference is, all upgrades to the water supply network, sewerage network, water recycling centre (WRC) and/or water treatment works (WTW) that are required as a result of non-domestic connections are funded by the customer seeking them; but for domestic connections, network upgrade costs are averaged into an infrastructure charge, and WRC and WTW upgrade costs are borne by the water company. The reason for the discrepancy is partly to do with rules set by the regulator that govern Anglian Water and partly due with accommodating the much greater diversity in the nature of non-domestic connections in a way that is fair.

Applicants for non-domestic connections should be clear that Anglian Water has various means at its disposal to temporarily prevent non-domestic connections until suitable mitigation, whether it be to the network, WRC and/or WTW, is complete. Generally, we are able to deliver water or sewerage network upgrades in 18-24 months; however, the provision of a new WTW/WRC or the extension of an existing WTW/WRC can take in excess of 3 years and may require guidance and/or permits from the Environment Agency (EA) and in some cases Internal Drainage Boards and the Lead Local Flood Authority.

We have put together some detailed information below:

Water Network

Since 2018, the impact on the water network of connections for domestic purposes associated with growth has been covered through the infrastructure charge, formerly the zonal charge. The infrastructure charge is additional to and separate from charges made for the actual work of making an individual connection or any new water main requisitioned by the customer. It is designed to reflect the average cost over a five-year period of network reinforcement required to accommodate connections for domestic purposes associated with forecasted growth across the region. Flows to “production” and their impact on the network are mitigated by the individual customer, at their cost.

The infrastructure charge will be levied to cover the cost of network reinforcements that are required to due to domestic water use by trade premises. No infrastructure charge is due in respect of flows for production.

Used Water Network

Since 2018, the impact on the sewerage network of connections for domestic purposes associated with growth has been covered through the infrastructure charge, formerly the zonal charge. The infrastructure charge is additional to and separate from charges made for any new public sewer requisitioned by the customer. It is designed to reflect the average cost over a five-year period of network reinforcement required to accommodate connections for domestic purposes associated with forecasted growth across the region. Trade effluent from “production” and its impact on the network are mitigated by the individual customer, at their cost.

The infrastructure charge will be levied to cover the cost of network reinforcements that are required to due to domestic flows produced by trade premises. No infrastructure charge is due in respect of flows for production.

Income Offset

The income offset is applied against the water infrastructure charge; however, no discount is given in respect of new water infrastructure for non-domestic purposes, particularly as there is no infrastructure charge to set it against.

Infrastructure for Both Domestic and Non-Domestic Purposes

Where capital costs are incurred in providing infrastructure to be used for both domestic and non-domestic purposes, the principles in this document will apply to the domestic and non-domestic elements of the infrastructure on a proportional basis.

Provision of a Fixed Charge Calculation

In accordance with Ofwat’s rules, our Developer Charging Arrangements provide for a fixed charge calculation in respect of requisitions of new infrastructure for domestic purposes, to enable developers to calculate charges up-front. However, we do not offer the fixed charge calculation in respect of infrastructure for mixed domestic and non-domestic purposes. This is because the diverse nature of infrastructure for non-domestic purposes makes such an exercise meaningless.

The means of making the charge

Anglian Water has a number of ways to include the charge for non-domestic infrastructure upgrades. If you are requisitioning a new water main or public sewer or seeking a new water connection, the provision of the upgrades will most likely be included in that process. If you are making a new sewerage connection to discharge trade effluent, the right to connect without Anglian Water’s consent is disapplied, and arrangements are likely to be made by way of your trade effluent consent process. Planning conditions relating to water supplied to or effluent produced by any new development may also be engaged and dealt with appropriately.

Trade Effluent Consents

Trade effluent discharges require a Trade Effluent Consent from the local sewerage undertaker. A trade effluent application (G/02) should only be submitted a maximum of 6 months before a discharge is due to commence. We recommend approaching us significantly before to assess trade effluent requirements as some trade effluent consents can require extensive planning and modelling. Indicative consent limits can be provided through the submission of a Pre-Planning Application. The consenting process considers the impact on both the network and treatment required at the WRC. Please note that the provision of an indicative consent does not remove the requirement for a Trade Effluent Consent to be obtained in advance of a discharge commencing. Further information on trade effluent can found in our guide.

Trade Effluent Growth Enquiries are completed in two stages. The first stage is a hydraulic capacity assessment taking place to determine if the capacity in the receiving sewer network and WRC exists. This is published as a Pre-Planning Report. If capacity is available, then the second stage of assessment looking at the nature and composition of the proposed discharge takes place to determine if capacity exists. If there is not the required hydraulic or treatment capacity, your Growth Liaison Manager will inform you of next steps and how to progress with the proposed discharge, advising of the likely timescales and upgrade costs required. The second stage of the report for trade effluent with indicative limits or not is published as an addendum to the initial report.

Water Recycling Centres

WRC are regulated by the EA using a permit. Permits set limits on the volume of flow received at the works and the quality and volume of the treated final effluent that is returned to the environment.

When discharging Trade flows, it’s important to consider both volume and the composition of the effluent. We will assess flow and treatment capacity at the WRC and the customer may be required to fund upgrades, to provide capacity for flows, treatment or both.

WRCs require permits from the EA so that we can discharge final effluent into the environment. These permits contain limitations and conditions to protect the receiving water body. If upgrades to a WRC are necessary, we will be required to apply for a new permit from the EA or to seek a variation of an existing one. The application for a new permit or a variation may require extensive modelling by the EA. Furthermore, we cannot issue the design and commence construction of the new or extended WRC until we have that new permit or variation (and know what the limitations and conditions will be), and construction will take a number of years to complete.

Maintaining Headroom

It has long been a principle of the Water Industry Act 1991, that the duty to provide water and sewerage services for domestic purposes is absolute, whereas for non-domestic purposes it is not. Hence section 66A(4) of the Water Industry Act 1991 provides that a water undertaker is not required to provide a supply of water for non-domestic purposes where doing so would put at risk its ability to meet existing or probable future obligations to supply water for domestic purposes (or could do so only by incurring unreasonable expenditure). Likewise, a sewerage undertaker retains an element of control over non-domestic sewer discharges by virtue of the trade effluent provisions in the Water Industry Act 1991.

Furthermore, headroom (in other words capacity to provide a service to future domestic customers) has generally been funded from contributions or schemes attributable to domestic water supply and sewerage services. Consequently, we will design the infrastructure that must be provided to make supplies of water or sewerage services for non-domestic purposes in a manner that preserves any existing headroom for domestic purposes, and our charges will reflect this design.

It may be necessary to provide additional capacity beyond that required by the customer and also beyond that required to preserve headroom for domestic purposes. In such circumstances it would be unreasonable to request a capital contribution for the entire scheme from that customer. In this case we will apportion the cost of the infrastructure in using peak flows as set out in paragraph 3.4. of capital contributions policy (for non-domestic purposes).

What's the difference between a domestic & non-domestic service?

Find out more here.

FAQ

What is process Water?

Process water is water supplied to a trade premises for use in a trade process, e.g. canning or vegetable processing.

What is Trade Effluent?

The Water Industry Act 1991 defines any used water discharged as a result of an activity carried out at a trade premises as “trade effluent”. Trade effluent will include any water used in a production process or in cleaning or cooling activities.

Trade effluent doesn't include domestic sewage such as used water from toilets or hand washing which might take place on industrial premises. Businesses producing trade effluent vary in size from small launderettes to large chemical manufacturing facilities.

Why is charging for non-domestic premises different from domestic premises?

This is due to Ofwat’s charging rules. Infrastructure charges levied over a rolling five-year period must be calculated to equate to the costs involved in network reinforcement required to facilitate the provision of water and sewerage services for domestic purposes. Such costs may not, by virtue of the same rules, be included within direct requisition or connection charges. Water and sewerage services for non-domestic purposes fall outside this rule.

This is also due to the nature of calculating infrastructure charges. For a new house these are set by reference to the number of water or sanitary fittings in an average house. For new commercial premises, they are set by reference to the actual number of water or sanitary fittings within the premises. This type of calculation has no application to water or sewerage services provided for non-domestic purposes, such as an industrial process.

Consequently, we do not apply an infrastructure charge in respect of connections for non‑domestic purposes.

What is meant by domestic water?

Section 219 of the Water Industry Act 1991 sets out what is understood by water supplied for “domestic purposes”. This means water provided for the purposes of drinking, washing, cooking, central heating, and sanitation at the premises supplied; and it may include water used for the purposes of a profession carried on in a house and for watering gardens or washing vehicles using water from within a house.

What is meant by domestic sewage?

Section 117 of the Water Industry Act 1991 sets out what is understood by “domestic sewerage purposes”. This means the removal from buildings of the contents of lavatories; the removal from buildings of water which has been used for cooking or washing; and the removal from buildings of surface water; but does not include the removal of any water used for a laundry business or from preparing take-away food, nor water from land where there are no buildings. Non-domestic sewage discharge will nearly always be trade effluent but there may be very rare cases when it is not.

How do I know if I need to fund upgrades?

We will assess the impact of your proposals in terms of water demand and used water discharge and advise you if upgrades are required.

How do you calculate the cost?

Our estimating tool C55 is used to generate an estimate for the scope of work that needs to be delivered. The data that is used to produce the estimate is historic cost data, from completed projects where the same scope has been carried out. Additionally, inflation, preliminary factors and overheads are assessed and added to the estimate to produce an estimated price.

Why do WRC upgrades take so long?

If we are required to build a new WRC or extend an existing one, we will need to apply for a new permit from the EA. The application process happens in two stages and the EA are obliged by law to ensure that the additional flows will not have a detrimental impact on the environment. They may also be required to undertake extensive modelling of the receiving watercourse before determining our application. There tends to be a lot of dialogue between the two parties as part of the process and we are unable to commence detailed design until the permit is provided, because otherwise, what we build may not meet the final permit limitations and requirements.

The new permit may also impose tighter limits on the discharge which then need to be factored into the design of the upgrades.

Once we move into the delivery phase of the project, we will undertake optioneering of potential solutions to ensure that the solution delivered is optimal in terms of cost, sustainability, operability, carbon and compliance with the permit.

Sometimes we may also be required to purchase additional land to extend the WRC, which will also add significant time to the delivery process: there is no guarantee that an adjoining landowner is willing to sell, and although we have compulsory purchase powers, these generally take at least 12 months to exercise.

How would charge for infrastructure provided for both domestic and non-domestic purposes?

We would charge on a proportional basis with the relevant proportions worked out by reference to the peak flow of water supplied or effluent discharged for domestic and non-domestic purposes; there will be no upper or lower threshold to the application of this principle. Consequently, even if only one property (or all but one property) among those to be supplied is using water for non-domestic purposes, the principle in this paragraph will still be applied. We will apply standardised peak flow assumptions for each household unit that will be served.

The charges would be applied as follows: -

For both the domestic and non-domestic proportions of the new infrastructure: -

· 100% of the site-specific costs (on-site infrastructure)

· 100% of the site-specific costs (local off-site infrastructure)

For the proportion of the new infrastructure attributable to domestic purposes we will charge as follows: -

· no charge for network reinforcement or the upgrading of the WRC and WTW

· infrastructure charges (and discount) commensurate with that proportion

For the proportion of the new infrastructure attributable to non-domestic purposes we will charge as follows: -

· no infrastructure charges (or discount)

· the costs of network reinforcement and the upgrading of WRC and WTW commensurate with that proportion

Why is a fixed charge calculation not provided for developments that comprise a non-domestic element?

This is because the rates provided in the Developer Charging Arrangements assume the activity is required in respect of the whole of the infrastructure, not a proportion of the infrastructure. The activities required to build infrastructure with a non-domestic element are also difficult to predict, due to potential complexity and given that the overall charges cannot be known, the strategic objective of providing an up-front figure could not be achieved in any event.

Why is no income offset applied to non-domestic developments?

This is because the discount is a reflection of the income-offset formerly enshrined in now‑repealed legislation, which only applied to requisitions of infrastructure for domestic purposes. Since the discount is applied to the infrastructure charge and there are no infrastructure charges in respect of infrastructure supplied for non-domestic purposes, there is nothing to provide a discount against.

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