I was under the misapprehension that the so-called "Rainwater Charge" in the UK was a April 1st joke - but it turns out it is actually correct.

I find this hilarious - private companies are allowed to collect our water (which largely tends to come down to earth as rain) without paying me for it, but when it drains off my land I have to pay for what goes into their drains..

As I am engaged with the local Explorer scouts group I find it very disturbing that they also want to charge voluntary groups for this - in effect helping to close down such groups.

The following is the reply letter received from OfWat (guess what it stands for).

Btw. if this is what they consider a clarification that the british education system needs to be improved :

Thank you for your e-mail to our chief executive about surface water drainage charges for scout groups.

We appreciate your concerns about this method of charging. There has been a certain amount of misinformation about this issue. This has caused unnecessary worry and concern for organisations like yours, which play an important role in giving opportunities to young people that may not exist elsewhere in the local community.

Surface water drainage: background

Water and sewerage companies in England and Wales have to remove and process the rainwater that falls on properties and then flows directly or indirectly into the public sewer systems. The costs to the companies of this essential service are significant – approximately £600 million a year across England and Wales. However, without good upkeep of the sewer system, the likelihood of surface water flooding and sewer flooding would increase dramatically. Therefore, the companies are entitled to charge customers so that they can provide this service.

Our website (http://www.ofwat.gov.uk/consumerissues/chargesbills/prs_web_swdpos) sets out some background on our position to these charges.

The fairest way to charge

Calculating the precise costs of draining surface water through public sewers is not simple. In the past, the companies based their charges on the rateable value of a premises. This was not a good indication of how much surface water drains from a property to the public sewer. It was also unfair as it resulted in some customers cross-subsidising others. For example, a small city centre newsagent, with a small drainage footprint, could end up paying in part for services uses by a large out-of-town factory or supermarket. Customers now broadly pay for the service they receive.

Since 2003, we have recommended charging for surface water drainage according to site area as the fairest approach. This is because it better reflects the actual costs customers impose on the sewer system. We believe that the costs for this should reflect a customer’s use of the service rather than the type of organisation. If we are to protect customers, we need to make sure that those who place similar demands on the system pay broadly similar charges

We accept that while customers with high rateable values but smaller sites may benefit from lower charges, other customers with lower rateable values may see significant increases. We appreciate that increases in utility bills call for any organisation to make difficult decisions.

Ofwat’s charging policy

Our guidance to the companies remains in support of site area-based charges. However, it is important to stress that we do not set water and sewerage charges. It is for the companies to set their charges and consider the impact on their customers. Different companies structure their charges in different ways. They are responsible for how they implement their charging schemes. Ofwat ensures that the companies’ charging schemes are in line with their price limits. We have based our guidance on charging for surface water drainage on fairness and environmental responsibility.

We consider that social tariffs, which charge according to the status of the organisation rather than the services being provided, are very much a matter for Government. For example, tariffs for vulnerable groups were introduced to comply with guidance accompanying the Water Industry Act 1999, but these charges fix metered bills for household customers in particular social circumstances to the average household bill.

Our concern is that permanent reductions in charges to one group of customers would increase charges to other customers. It is not for Ofwat or the water companies to impose a social policy to exclude certain groups of customers from charges or services they receive. In our view, if groups are to receive a cross-subsidy paid for by other customers, then it should be made explicit in appropriate legislation.

An environmentally responsible approach

As well as being the fairest approach, we believe that charging by site area is the most environmentally responsible one. For example, it offers financial incentives for areas of land that drain to soakaways or through a permeable surface rather than through the drainage system. This reduces the likelihood of flooding from overloaded sewers, which causes hardship and misery. It can also cause pollution when water courses or open spaces are affected. Reducing this risk is a key priority for consumers.

We note that the Scout Association has considered the possibility of changes in drainage arrangements for specific sites. A phased approach in implementing these charges does enable customers to consider these issues.

The Pitt review into the 2007 floods in Gloucestershire, Yorkshire and Humberside highlighted the danger of large amounts of surface water draining into the public sewer system. Sir Michael Pitt’s final report and recommendations reinforced the message that surfaces that did not allow water to soak through them (such as concrete or asphalt) increased the likelihood of flooding. Initiatives that replace areas of tarmac with grassed or gravelled areas can help to halt this process. With the old method of charging, there was no incentive for organisations to reduce their impact on the public drainage system. This new method of charging encourages organisations to take an environmentally responsible approach.

Specific problems affecting United Utilities’ customers

Four of the ten water and sewerage companies have already implemented site area-based surface water drainage charges. For Yorkshire Water and Northumbrian Water, effective communication with customers during implementation has meant that the charges were largely accepted.

However, we have criticised the way that United Utilities implemented the move to site area-based charges. We have had a number of discussions with the company to find ways to address customers’ concerns. We reminded the company of the need to assess the possible impacts on customers’ bills, in particular by taking into account the scale and speed of any bill changes.

United Utilities responded by confirming a moratorium on charges for particular groups and moving forward with a redesign of charging principles. We will continue to meet with the company during this year as it confirms its charging proposals for 2010 and beyond.

There are examples where other companies have introduced charging on a site area basis in a way that is sensitive to community and voluntary groups, but consistent with the principle of charging customers according to their use of the service. We expect United Utilities’ final scheme to have the same level of acceptability to its customers as in those areas where it has been implemented in a sensitive and even-handed way.

We are concerned about the unnecessary worry the misinformation surrounding this issue may have caused organisations such as yours. We have written to the Scout Association’s public affairs office to ask for further information about the total impact of last year’s charges on organisations in the United Utilities' area. We will use the information they provide us to challenge the company directly and keep them accountable to all their customers.

If your group has been affected by the changes implemented by United Utilities in 2008-09, it would be very helpful if you could provide us with specific examples of changes to your particular bill. We can use any information we receive as we consider the company’s charges proposals.

I hope that this explains our approach on this issue.

Fran Ward

Senior Analyst

Ofwat

Tel: 0121 625 1404

Fax: 0121 625 1359

www.ofwat.gov.uk

Address: Centre City Tower, 7 Hill Street, Birmingham, B5 4UA