The Water Industry Act of 1991 contains legislation that allows sites within the service areas of local water boards to be served by another provider?

As a result, the developers have more choices and flexibility regarding the water infrastructure they need for their development.

Ofwat creates a NAV whenever an alternate provider is chosen.

What does NAV stand for?

When employed in the context of the water industry, the abbreviation "NAV" refers to new appointments and variants.

The purpose of NAVs, which are governed businesses by Ofwat, is to take on the position of the local water company by providing water and/or wastewater services to a particular regional site.

What's a NAV agreement?

Developers must ask for a New Appointment and Variation (NAV) on eligible sites for the new provider to deliver water and/or wastewater services to their development.

If the site qualifies or meets the requirements for a new NAV agreement to be made. Then a NAV agreement may be granted, which entails replacing the current provider with a newly appointed self lay provider, who will adopt, own, and maintain the on-site provision of your water and/or wastewater infrastructure and services.

Before the new appointee can be given the new agreement, the NAV application procedure goes through five stages—from pre-application to the final decision.

OFWAT is responsible for New Appointments and Variations (NAVs)

A legislative structure is in place that enables developers to ask Ofwat to make or appoint a new NAV. These are governed by a set of requirements and rules that, together with the ongoing obligations that the new NAV provider must then fulfil. Variations take place when modifications or amendments to the current contract with the incumbent company are made, which may have an impact on specific components of the water or wastewater infrastructure. The majority of NAVs awarded to date have gone to companies that are new to the water sector market or have a track record in the larger energy or utility industry where multi-lay services are offered.

NAVs and their effects on the water industry

The Water Industry Act of 1991, which applies to England and Wales, established the introduction and legalisation of NAVs into the market. In doing so, it effectively created new options that pose competitive threats to the incumbent water companies, which have historically monopolised the market.

The NAV agreements allow the new provider to provide, administer, maintain, and link the onsite water and/or wastewater services. In doing so, they essentially adopt the regional service requirements, giving developers of new housing or mixed-use development options.

By choosing a Self-Lay provider rather than sticking with the incumbent supplier, time and money can often be saved. Developers and the market as a whole will benefit from the flexibility, cost- and time-savings this brings.

Versatile Utilities are a fully Self-lay provider, independent connection provider and a gas utility infrastructure provider. This means we can offer a multi-utility option of all three services, saving additional time and money for our clients.