Self-laying of water mains

29 January, 2004

Ofwat has provided an example of how the 'commuted sum and asset value' will be calculated.

Asset value is the amount of money house builders will be paid to get a self-lay company to install the water mains.

Commuted sum is the money the house builder will pay to the water company for them to install the water mains when they do not want to requisition. It is also called the capital contribution. At present, this can range from 40% to 110% with the Water Companies.

This example shows it will probably drop to 20% depending on the rate of completion of the houses.