3Sewer adoption
40.In 2011, private sewers and lateral drains50 were transferred to WaSCs under Regulations.51 The Government had intended that private sewers and lateral drains built after July 2011 would also be transferred; section 42 of the Act would give effect to this. The Government has not, however, commenced these provisions, stating that economic evidence has not to date been found to “make the case that the processes […] do not place a new regulatory burden on the housebuilding industry”.52 The Government is instead focusing on encouraging the water and house-building sectors to work together on processes to support voluntary adoption arrangements. In the absence of commencement, it is possible for new private sewers and pumping stations to be transferred, but only with an agreement between the WaSC and developer under section 104 of the Water Industry Act 1991, and adoption is not guaranteed.53 Witnesses such as the HBF considered non-commencement of the next stage of private sewer transfer to be a failure in implementation of the Act.54
41.Witnesses criticised the non-commencement of section 42 for two main reasons. Firstly, it was leading to the amassing of a large number of sewers which might not be being built to technical standards but which might at some stage be transferred to WaSCs who would then have to bear the significant costs of rectifying problems. Although not all WaSCs agreed with its position,55 Water UK supported the provisions in section 42: it considered the adverse consequences of non-commencement to be “material” and called on the Government to assess the financial impact of remedying faults in future if the measures were not commenced.56 Secondly, the costs of maintaining post-2011 systems are currently borne by homeowners rather than water companies whilst those with older systems have their costs paid by water bill payers. Beech Tree Close (Bookham) Management Company Limited, representing a group of homeowners, told us that each household paid an extra £200 per annum to cover the costs of their private pumping station—costs they would not have to bear if section 42 were commenced.57 Defra’s own guidance for the 2011 transfer concluded that this type of situation was unfair since:
These customers are not only paying their water and sewerage companies for sewerage services, but are also responsible for the upkeep of the private sewers serving their properties. They are, in effect, paying twice for their sewer service, and in doing so are effectively subsidising all those who are not served by private sewers. This situation is not only unfair, but also results in hardship for individuals.58
42.Failure to commence provisions in section 42 to enable automatic transfer to Water and Sewerage Companies of private sewers, lateral drains and pumping stations built since July 2011 could potentially lead to an accumulation of sub-standard infrastructure. The Government’s assessment of the costs and benefits of commencing these provisions was flawed since it did not fully take into account the future costs to the water industry of remedying faults in private sewers upon transfer.
43.Furthermore, non-commencement of section 42 has created an arbitrary divide between those reliant on sewers, lateral drains and pumping stations built before 2011 and those reliant on systems built later. Those using pre-2011 systems have their costs shared out among all of a water company’s customers but, unfairly, those using newer systems must directly bear the operating costs themselves. We therefore recommend commencement of the provisions in section 42 of the Flood and Water Management Act as soon as Parliamentary time is available after the General Election as this constitutes a fairer and lower-cost option than current approaches.
50 Drains (serving one property) remain the responsibility of the property owner, with sewers (serving more than one property) and lateral drains becoming the responsibility of Water and Sewerage Companies for those systems covered by the 2011 Regulations.
51 The Water Industry (Schemes for Adoption of Private Sewers) Regulations 2011 came into force on 1 July 2011. Sewers and pumping stations connected to the public sewer pre-July 2011 were transferred to water companies in July 2011 and October 2016 respectively
52 Defra, Post-legislative Memorandum on the Flood and Water Management Act 2010, Cm 9402, February 2017
58 Defra, Private Sewers Transfer Regulations: provisional non-statutory guidance, June 2011, p 3
25 April 2017