EWSC Project Reports
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Environmental Incentives:
Standardisation across the water sector to deliver water smart housing
In 2024 Ofwat published the “Environmental Incentives Common Framework”. It sets out the high-level principles and processes for all Water Companies and Developer Customers to follow with respect to Environmental Incentives. It provides Developer Customers with some commonality across Water Companies while allowing Water Companies to retain flexibility and ownership of their charges and Environmental Incentives.
Some companies have had incentives in place for years; however, it has been observed that: a) Uptake has been low and b) Stakeholder awareness is low. As anchor institutes in the creation of water smart communities in the UK, the water sector, local authorities and building developers must work together to reduce stress on water resources and manage rainwater more sustainably. Ofwat specifically asks for collaboration.
A collaborative review of the current Environmental Incentives proposed by Water Companies has been undertaken, to agree on a standardised set of incentives applicable across UK’s Water Sector. The key assumption is that standardisation will promote uptake of incentives.