WATER SUPPLY Citation and interpretation 1 1 These Regulations may be cited as the Provision of Water and Sewerage Services (Reasonable Cost) (Scotland) Regulations 2006 and shall come into force on 1st April 2006. 2 In these Regulations– “the 1968 Act ” means the Sewerage (Scotland) Act 1968; “the 1980 Act ” means the Water (Scotland) Act 1980; “the 2002 Act ” means the Water Industry (Scotland) Act 2002 ; “the 2005 Act ” means the Water Services etc. (Scotland) Act 2005 ; “charges scheme” means a charges scheme made under section 29A of the 2002 Act ; “dwelling” has the same meaning as in Part II of the Local Government Finance Act 1992; “public sewerage system” has the same meaning as in section 29 of the 2005 Act; “public water supply system” has the same meaning as in section 28 of the 2005 Act; “sewerage charges” means charges payable under a charges scheme in respect of the provision of sewerage to, or the disposal of sewage from, a dwelling; and “water charges” means charges payable under a charges scheme in respect of the supply of water to a dwelling. Reasonable Cost 2 1 For the purposes of section 1(3) of the 1968 Act, so far as relating to section 1(2)(a) of that Act (duty of Scottish Water to provide for sewerage of their area), the reasonable cost to Scottish Water of a connection to the public sewerage system in respect of a dwelling shall be that specified in regulation 4(1). 2 For the purposes of section 6(2) of the 1980 Act (duty of Scottish Water to provide supply), the reasonable cost to Scottish Water of a connection to the public water supply system in respect of a dwelling shall be that specified in regulation 5(1). Application of the Regulations 3 1 These Regulations do not apply– a to a connection of a dwelling to the public sewerage system involving only the construction of a drain; or b to any element of a connection to the public sewerage system which Scottish Water requires to make in compliance with any directions given to it under section 56 of the 2002 Act so far as setting objectives of a type referred to in section 56A of that Act ; 2 These Regulations do not apply– a to a connection of a dwelling to the public water supply system involving only the construction of a service pipe; or b to any element of a connection to the public water supply system which Scottish Water requires to make in compliance with any directions given to it under section 56 of the 2002 Act so far as setting objectives of a type referred to in section 56A of that Act. Calculation of Reasonable Cost: the 1968 Act 4 1 The reasonable cost of a connection to the public sewerage system shall be the lower of– a the cost calculated in accordance with regulation 6; or b subject to paragraph (3), the cost as calculated in accordance with the formula specified in paragraph (2). 2 The formula is– £ cost = A c [ 1 - ( 1 1 + c ) 12 ] Where– “A” is the average of sewerage charges calculated in accordance with the following formula– A = X + Y 2 Where– “X” is the amount specified in a charges scheme in respect of sewerage charges payable in respect of a Band B dwelling for the financial year in which the connection is requested; and “Y” is the amount specified in a charges scheme in respect of sewerage charges payable for a Band C dwelling for the financial year in which the connection is requested; and “c” is 3.75% . 3 Where a connection to the public sewerage system will serve more than one dwelling, the reasonable cost calculated in accordance with the formula specified in paragraph (2) shall be multiplied by the number of dwellings to be served by the connection. Calculation of Reasonable Cost: the 1980 Act 5 1 The reasonable cost of a connection to the public water supply system shall be the lower of– a the cost calculated in accordance with regulation 7; or b subject to paragraph (3), the cost as calculated in accordance with the formula specified in paragraph (2). 2 The formula is– £ cost = A c [ 1 - ( 1 1 + c ) 12 ] Where “A” is the average of water charges calculated in accordance with the following formula– A = X + Y 2 Where– “X” is the amount specified in a charges scheme in respect of water charges payable in respect of a Band B dwelling for the financial year in which the connection is requested; “Y” is the amount specified in a charges scheme in respect of water charges payable in respect of a Band C dwelling for the financial year in which the connection is requested; and “c” is 3.75%. 3 Where a connection to the public water supply system will serve more than one dwelling, the reasonable cost calculated in accordance with the formula specified in paragraph (2), shall be multiplied by the number of dwellings to be served by the connection. Calculation of the cost of a connection: the 1968 Act 6 1 Subject to paragraph (2), when calculating the cost of a connection to the public sewerage system, including a connection that serves more than one dwelling, account shall be taken only of the costs reasonably and necessarily incurred in making the connection, including– a the costs of the provision of such other infrastructure as Scottish Water considers reasonable and necessary in consequence of the connection; and b such other costs as Scottish Water considers reasonable and necessary in consequence of the connection. 2 No account shall be taken of– a any part of a connection that relates to the matters referred to in regulation 3(1); and b any charge which is payable under a charges scheme in respect of the making of a connection to the public sewerage system. Calculation of the cost of a connection: the 1980 Act 7 1 Subject to paragraph (2), when calculating the cost of a connection to the public water supply system, including a connection that serves more than one dwelling, account shall be taken only of the costs reasonably and necessarily incurred in making the connection, including– a the costs of the provision of such other infrastructure as Scottish Water considers reasonable and necessary in consequence of the connection; and b such other costs as Scottish Water considers reasonable and necessary in consequence of the connection. 2 No account shall be taken of– a any part of a connection that relates to the matters referred to in regulation 3(2); and b any charge which is payable under a charges scheme in respect of the making of a connection to the public water supply system. RHONA BRANKIN Authorised to sign by the Scottish Ministers St Andrew’s House, Edinburgh 8th March 2006