A common feature of the S104 agreements is a loan. This is a sum of money (usually 10% of the cost of the sewer system) that the developer pays to the water company at the beginning of the agreement. The water company will maintain it for the duration of the agreement and use it if the developer is late for any reason (e.g. liquidation.B) and does not provide a channel network in accordance with the required standards. This money would be used to complete the network. This is an agreement between the developer and the water company that defines the acceptance criteria. In short, the developer agrees to build the sewers to an agreed standard and wait for them for some time after construction, usually a few years. After this period, in the absence of significant problems, the ownership is transferred to the water company, which is then responsible for the sewers. Interestingly, many lawyers will try to get a copy of these agreements. It has always been Severn Trent`s policy that S104 agreements are a confidential agreement between them and the developer and, as such, are not passed on to third parties. However, many developers provide them upon request, so we always recommend contacting them instead.

The Water Act 2014 also introduced amendments to WIA91, which required Ofwat to adopt legal codes for adoption agreements for companies that operate wholly or primarily in Wales. However, in March 2019, the Welsh Government decided to postpone the start of these amendments in order to await the entry into force of changes to the governance of the water sector stemming from the Wales Act 2017 and which are currently expected to take place in April 2022. We will work with the Welsh Government to continue to look at this issue. The adoption of a drainage system by a Section 104 agreement is a drainage system that drains private areas (such as roofs and entrances) as well as highway drainage (if both drain into the same sewerage system). The last authority of adoption is the sewer croque-mort. The cost of entering into such an agreement varies depending on the size of the development and drainage system required. The usual course of adopting drainage for new development is either through the Section 38 Agreement (Highways Act 1980) or the Section 104 Agreement (Water Industry Act 1991), depending on who will take charge of the drainage system. Companies also said they did not expect not to be able to start reporting by October 1, 2020 based on the level of service identification set out in industry documents. The main reason for this is the time it will take to install the reporting systems.