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Domestic Development - Reasonable Cost Contribution

Scottish Water man talking to customer

Reasonable Cost Contribution (RCC) for domestic development customers

What is 'Reasonable Cost Contribution' in relation to new development connections to the public infrastructure?

Financial contributions are defined within legislation, in accordance with the Water Industry (Scotland) Act 2002, Scottish Water is required to meet the costs of providing strategic capacity required for new developments (Part 4 infrastructure) and Customers are required to meet the costs of providing additional local capacity (Part 2 and 3 infrastructure), subject to a reasonable cost contribution from Scottish Water.

What are the current maximum values of contribution per house?

These values are reviewed on an annual basis through our Regulator, The Water Industry Commissions (WICS).

The maximum value of contribution for new domestic adoptable sewerage infrastructure is up to £1805.35 per house.

The maximum value of contribution for new domestic adoptable water infrastructure is up to £1555.31 per house.

(Figures current as of 10th June 2015)

Please note - Each development project will have a reasonable cost figure calculated at the design technical audit stage. The figure agreed can vary at any level up to the maximum contribution figure stated, depending on the calculation outcome. When assessing development budgets, do not assume that your development will be eligible for the maximum contribution per property.

What determines the information to contribute to the calculation?

The Provision of Water and Sewerage Services (Reasonable Cost) (Scotland) Regulations 2006, determine what that reasonable cost contribution should be, by specifying what matters are to be taken into, or left out of, account in calculating the contribution and also by specifying the method of calculation.

The Regulations clarify how the costs of different elements of each new connection are shared between customers and Scottish Water.

The costs associated with all new Part 1 infrastructure are the sole responsibility of the customer.

Extensions or upgrades to the Part 2 or Part 3 elements of the existing water and waste water networks will be funded by the customer, subject to a contribution from us, to take account of the future income that will be received from the new connection. This information will directly contribute to the calculation used to confirm the level of contribution from Scottish Water for all related Part 2 or Part 3 costs.

A contribution is available for all new connections whether a new development or a first time connection to an existing property. However, it is not available for the adoption of existing private assets or for the upgrading of existing private infrastructure to adoptable standards.

How are the 'Parts' of a connection defined?

Part 1: The connection from individual premises to a water main or sewer.

Part 2: The water mains and sewers that connect developments e.g. a street of houses to
trunk mains and trunk sewers and some sustainable urban drainage systems (SUDS).

Part 3: The local bulk infrastructure, such as trunk mains and trunk sewers, water service reservoirs, waste water pumping systems and some SUDS.

Part 4: The strategic assets such as raw water intakes, water impounding reservoirs, raw water pumping stations and aqueducts, and water and waste water treatment works.

How do we advise you of the RCC agreement for your development site?

Once we have reviewed your design submissions and supporting materials, and have completed our audit, two copies of a Financial Reimbursement Agreement (FRA) will be issued to you as part of the paperwork which is dispatched. 

This clearly outlines the contributions for your site and what is eligible.  It is expected that the Developer/Applicant will review this document, and will sign a copy to retain, and sign a copy to return to our office.

Do you have further questions?

If you have any further enquiries regarding:

  • General RCC policy
  • A specific development site
  • Non-Domestic RCC policy for Retail development
Please contact our department directly and your enquiry will be referred to a member of the team.

Alternatively further RCC process and policy detail can be obtained within section 7 (pages 20-23) of our Customer Guide