From 1 April 2026, UK water companies across England and Wales will implement their new 2026/27 developer charging arrangements, bringing another round of significant increases to water and wastewater infrastructure costs. These rises will directly impact new connections, requisitions, and infrastructure charges for schemes ranging from single plots to large residential or mixed‑use developments. This year’s adjustments reflect wider market trends, including updated excavation and reinstatement costs, expanded environmental obligations, and more granular charging models.
What’s Changed?
Significant Price Increases for 2026/27
Across England and Wales, infrastructure charges for new developments are rising sharply, with some wastewater charges increasing by over 20% year‑on‑year.
Key highlights:
- Wastewater infrastructure charges are seeing the steepest increases due to high network reinforcement costs.
- Water infrastructure charges are also rising significantly, with some companies reporting increases of around 17% year‑on‑year.
- Southern Water has published indicative increases for 2026/27, with water infrastructure charges rising from £625 to £717.
These increases sit alongside Ofwat’s 2024 price determinations for the 2025–2030 period, which allow companies to raise revenues to fund essential upgrades.
Why Charges Are Increasing
AMP8 Investment
Water companies are entering the largest investment cycle in UK history, with £104 billion allocated to upgrade wastewater treatment works, reduce storm overflows, and modernise supply networks during 2025–2030.
Updated Contractor Rates
Many water companies have retendered contracts for new connections, excavations, reinstatements, and associated off‑site works. Revised pricing structures now reflect more expensive labour, reinstatement materials, and compliance requirements.
More Granular Charging Structures
Several companies have expanded their charging categories, with some introducing 20–30 different developer‑specific charges, replacing broad “flat‑fee” categories with more precise, cost‑reflective pricing.
Pre-Development Fees
Many UK water companies have introduced pre-development fees to cover the costs of early-stage services, including:
- Capacity checks to assess network availability
- Technical vetting of proposed connection designs
- Requests for sewer and water network records
- Pre-planning advice and feasibility assessments
These fees reflect the actual resource investment water companies make before any infrastructure work begins and are now charged separately rather than bundled within connection fees.
What this means for developers:
- Budgets must now include these non-contestable fees early in the project
- Pre-development fees are charged regardless of who completes the connection works
- Accounting for these costs upfront helps avoid unexpected expenses and delays later
What’s New for Developers in 2026/27
Infrastructure Charges Based on a 5‑Year Rolling Average
Network reinforcement calculations now use a rolling 5‑year method, smoothing fluctuations but still reflecting rising long‑term investment needs.
Higher Costs for Excavation Scenarios
Charges for excavation in verge, unmade ground, or complex reinstatement categories may see disproportionate increases compared to standard footway works.
Introduction of Lower‑Cost Options
Some companies are adding new, simplified options such as:
- Basic “tap‑in” water connections
- Low‑impact wastewater connections
- Reduced reinstatement categories. These can benefit small developments or single‑plot builds.
Environmental and Efficiency Incentives
Despite rising costs, many companies continue to offer:
- Discounts for water‑efficient homes
- Reductions for SuDS implementations
- Rebates for developments reducing surface water discharge
Stricter Requisition Charging Rules
Requisitions now focus strictly on site‑specific work, with broader reinforcement funded only through infrastructure charges, aligning with Ofwat’s charging principles.
What Developers Should Do Now
Check local water company documents
Each water company publishes:
- Charging Arrangements 2026/27
- Statement of Significant Changes
- Assurance Statements
Examples include:
- Thames Water – 2026/27 Charging Arrangements (effective April 2026) [thameswater.co.uk]
- United Utilities – Developer Services Charges Scheme 2026/27 (published for 1 April 2026–31 March 2027) [unitedutilities.com]
Verify charges carefully
We see regular errors in early quotes, including:
- The wrong charging year applied
- Missing environmental levies
- Incorrect application of 5‑year rolling reinforcement
- Misinterpreted contestable vs non‑contestable boundaries
- Outdated infrastructure charge tables used by providers
Let Us Handle It
As your multi‑utility infrastructure partner, Connections2energy:
- Secures accurate water, electric, gas, and fibre quotes
- Audit quotes for charging errors
- Manages all applications, approvals, and technical handovers
- Ensures compliance across all non‑contestable and contestable works
- Delivers fully coordinated utility connections