Draft guidance to water and sewerage undertakers and the Water Services Regulation Authority (Ofwat), in relation to social tariffs

Section 44 of the Flood and Water Management Act 2010 enables undertakers to include social tariffs in their charges schemes. These enable charges to be reduced for individuals who would otherwise have difficulty paying their bill in full.

Section 44 of the Act requires the Welsh Ministers to issue guidance which must include factors to be taken into account in deciding whether one group of customers should subsidise another. It also requires Welsh Ministers in issuing guidance to balance the desirability of helping individuals who would have difficulty paying in full with the interests of other customers.

The intention of this draft guidance is to meet these requirements and ensure the best outcome for customers in Wales. The draft guidance sets the framework within which an undertaker can bring forward a social tariff if it chooses to do so. It also sets the framework which Ofwat should consider when exercising its power to approve charges schemes.