Costs principle
Water Bill, Glossary: water terms, published by the Department for Environment, Food and Rural Affairs in November 2013, defines the costs principle as: ‘The basis for setting wholesale charges and charges for use of the system under the existing Water Supply Licensing regime. These charges are based on the end retail price to the customer under the current arrangement minus any costs ‘avoided’ by the incumbent water company as a result of the customer switching suppliers, but the incumbent can add on any costs of serving the licensee. An example would be the costs avoided if the company no longer has to send bills. The costs principle has been widely criticised for creating only a small margin on which a licensee can compete when setting prices. The charging guidance, in combination with Ofwat’s charging rules, will replace the costs principle with a more flexible charging regime.’
[edit] Related articles on Designing Buildings
- Cost.
- Incumbent.
- Mains water.
- Ofwat.
- Public water supply.
- Sewerage.
- Statutory undertaker.
- Types of water.
- Water Act 2014.
- Water.
Featured articles and news
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.
70+ experts appointed to public sector fire safety framework
The Fire Safety (FS2) Framework from LHC Procurement.
Project and programme management codes of practice
CIOB publications for built environment professionals.
The ECA Industry Awards 2024 now open !
Recognising the best in the electrotechnical industry.
Sustainable development concepts decade by decade.
The regenerative structural engineer
A call for design that will repair the natural world.
Buildings that mimic the restorative aspects found in nature.
CIAT publishes Principal Designer Competency Framework
For those considering applying for registration as a PD.
BSRIA Building Reg's guidance: The second staircase
An overview focusing on aspects which most affect the building services industry.
Design codes and pattern books
Harmonious proportions and golden sections.
Introducing or next Guest Editor Arun Baybars
Practising architect and design panel review member.
Quick summary by size, shape, test, material, use or bonding.
Types of rapidly renewable content
From forestry to agricultural crops and their by-products.
Terraced houses and the public realm
The discernible difference between the public realm of detached housing and of terraced housing.