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Affinity Water Charges Scheme 2015/2016

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1. Introduction and powers to charge ................................................................................. 3 2. Contacts and further information .................................................................................... 4 3. Definitions and interpretation .......................................................................................... 6 4. Metered tariffs and charges ............................................................................................11 5. Metering policy .................................................................................................................19 6. Non-metered tariffs and charges ....................................................................................27 7. Charges for vulnerable customers .................................................................................33 8. Payment terms .................................................................................................................38 9. Payment methods other policies and useful information ............................................43 10. Infrastructure charges .....................................................................................................49 Schedule of Charges ..............................................................................................................54

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Affinity Water Charges Scheme 2015/2016 Page 3 1. Introduction and powers to charge 1 This is the Charges Scheme of Affinity Water Limited the “Company” made under Section 143 of the Water Industry Act 1991. It is effective from 1 April 2015 to 31 March 2016 and may be referred to as the Affinity Water Charges Scheme 2015/2016. 2 The Company has resolved that the amounts set out in the Schedule of Charges are payable by Customers in accordance with this Charges Scheme. 3 The Companys powers to charge for water supplies are contained in Section 142 of the Water Industry Act 1991. Charges for water supplied to a dwelling must be in accordance with this Charges Scheme. Charges for water supplied to other premises may be in accordance with this Charges Scheme or by separate agreement with the Company. 4 The Company must ensure in accordance with Condition E of its Instrument of Appointment that its charges do not show undue preference to and that there is no undue discrimination against any class of Customers or potential Customers. 5 Charges fixed annually by the Company are payable for certain purposes other than the supply of water. These may be included in the Schedule of Charges and where applicable have been approved by OFWAT. Value Added Tax is payable on certain of these charges except where indicated. The Company may at any time fix an additional charge to enable it to comply with a statutory requirement. 6 The Company supplies water to three discrete geographical regions in the south east of England described in this Charges Scheme as the Central Region East Region and Southeast Region respectively. A map of the regions supplied by the Company is shown on the previous page. The charges payable and tariffs available in each of the regions may vary and are set out in the Schedule of Charges. 7 The Central Region has four separate areas for charging purposes referred to in this Charges Scheme as Colne Valley Lee Valley North Surrey and Rickmansworth. The charges payable in each of these areas may vary and are set out in the Schedule of Charges. 8 Sewerage services in the Company’s supply area are provided by Thames Water Utilities Ltd “Thames Water” Anglian Water Services Ltd “Anglian Water” or Southern Water Services Limited “Southern Water”. The Company collects the charges levied for these services by Thames Water and Anglian Water but not Southern Water under their respective charges schemes. These charges are shown for information in the Schedule of Charges but do not form part of this Charges Scheme. Affinity Water Limited Registered in England company number 2546950 Registered office: Tamblin Way Hatfield Hertfordshire AL10 9EZ

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Affinity Water Charges Scheme 2015/2016 Page 4 2. Contacts and further information 1 Enquiries about any matter in this Charges Scheme should be addressed to the Company Secretary Affinity Water Limited Tamblin Way Hatfield Hertfordshire AL10 9EZ. 2 The Company publishes information on a wide range of subjects and is required to follow certain codes of practice. The Company can be contacted and publications obtained using the details shown below. Website: www.affinitywater.co.uk By telephone Enquiries covered Telephone No. Operational enquiries Emergencies water quality supply and leak enquiries 0345 357 2407 Metered billing enquiries Account billing and moving home for metered customers 0345 357 2401 Non-metered billing enquiries Account billing and moving home for non-metered customers 0345 357 2402 Automated debit/credit card line 24 hours Payment of bills 0345 357 2400 Leakspotters Reporting of leaks 0345 357 2404 3 Consumer Council for Water CCWater CCWater represents water consumers and is a statutory body reporting to the Department of Environment Food and Rural Affairs. Customers of Affinity Water Limited are represented by the London and South East Region of CCWater. They will only deal with complaints where the water company has been given an opportunity to resolve the complaint in the first instance. They can be contacted as follows: Consumer Council for Water London South East Region Victoria Square House Victoria Square Birmingham B2 4AJ Web: www.ccwater.org.uk Email: londonandsoutheastccwater.org.uk Telephone: 0845 758 1658 or 020 7931 8502 Facsimile: 0121 345 1010.

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Affinity Water Charges Scheme 2015/2016 Page 5 4 Water Services Regulation Authority OFWAT Any matter which under the Water Industry Act 1991 may be referred to the Water Services Regulation Authority OFWAT for determination should be addressed to: Water Services Regulation Authority OFWAT Centre City Tower 7 Hill Street Birmingham B5 4UA Web: www.ofwat.gov.uk Telephone: 0121 644 7500 Facsimile: 0121 625 1400

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Affinity Water Charges Scheme 2015/2016 Page 6 3. Definitions and interpretation 1 The Interpretation Act 1978 shall have effect for the interpretation of this Charges Scheme as it has effect for the interpretation of an Act of Parliament. 2 In this Charges Scheme except where the context otherwise requires words in the singular include the plural and words in the plural include the singular. 3 If not defined above words and expressions used in this Charges Scheme shall be given the meaning of that used in the WIA 1991. References to the WIA 1991 or to any other Act or regulations shall include its or their amendment or replacement. 4 This Charges Scheme should be read and construed in conjunction with the WIA 1991 and any regulations made thereunder and the Company’s Instrument of Appointment. In the event of any conflict or inconsistency with this Charges Scheme the provisions of the WIA 1991 and any regulations made thereunder or as the case may be the Company’s Instrument of Appointment will prevail. 5 If any court or competent authority finds that any provision of this Charges Scheme or part of any provision is invalid illegal or unenforceable that provision or part-provision shall to the extent required be deemed to be deleted and the validity and enforceability of the other provisions of this Charges Scheme shall not be affected. 6 If any invalid unenforceable or illegal provision of this Charges Scheme would be valid enforceable and legal if some part of it were deleted the provision shall apply with the minimum modification necessary to make it legal valid and enforceable. 7 The following capitalised italicised words have the meanings given below: Billing Year A period of one year running from 1 April to 31 March. Central Region The area forming part of the Company’s water supply area as defined in its Instrument of Appointment from time to time that was supplied by Three Valleys Water PLC on 30 June 2009. Colne Valley The area forming part of the Central Region that was supplied by Colne Valley Water Limited on 30 March 1994. Cubic metre or m 3 A cubic metre is one thousand litres. Customer The consumer as defined in the WIA 1991 and any other person for or to whom the Company provides any services in the course of carrying out its functions as a water undertaker. Domestic Customer A Customer in respect of water supplied to Domestic Premises. Domestic Premises Premises or Hereditaments which fell or would have fallen within the classification of “domestic” in the Valuation List. Domestic Purposes a Drinking washing cooking central heating and sanitary purposes at any Premises but excluding:

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Affinity Water Charges Scheme 2015/2016 Page 7 i use of a bath or any other similar facility having a capacity measured to the centre line of overflow or in such manner as may be prescribed exceeding 230 litres ii the purposes of the business of a laundry and iii any purpose of a business of food or drink preparation for consumption off the Premises b where the whole of the Premises is occupied as a House the purposes of a profession carried on in that House c where a House is occupied together with another part of the same Premises and the House constitutes the greater part of what is so occupied the purposes of a profession carried on in the other part of the Premises and d such purposes outside the House including vehicle washing and garden watering as are connected with the occupation of the House which may be satisfied by a supply drawn from a tap inside the house without the use of a hosepipe or similar apparatus. East Region The area forming part of the Company’s water supply area as defined in its Instrument of Appointment from time to time that was supplied by Tendring Hundred Water Services Limited on 30 June 2009. Eligible Premises Premises which are not household premises as defined in Section 17C of the WIA 1991 and the extent of any such premises shall be interpreted in accordance with any relevant guidance issued by OFWAT under Section 17A9 of the WIA 1991 Hereditament A unit of property which would have been shown as a separate item in the Valuation List and shall include a unit of property assessed as such by the Company and includes a hereditament deemed to be a single hereditament by virtue of the Rating Caravan Sites Act 1976. House Any building or part of a building which is occupied as a dwelling house whether or not a private dwelling house or which if unoccupied is likely to be so occupied.

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Affinity Water Charges Scheme 2015/2016 Page 8 Instrument of Appointment The written instrument as varied from time to time appointing the Company as the water undertaker for the areas described and subject to the conditions set out in the instrument under what is now Section 6 of WIA 1991. Lee Valley The area forming part of the Central Region that was supplied by Lee Valley Water Limited on 30 March 1994. Leisure Pool Any kind of pool other than a Swimming Pool and garden ponds inflatable or otherwise which has a capacity of 1000 litres or more and which is up to 1 metre in depth. Measured Charges Notice A notice given by the Customer to the Company requesting the introduction of Metered Charges in respect of Domestic Premises. Metered Charges Charges which include an element calculated by reference to the volume of water passing through a meter. Metering Equipment Apparatus owned and maintained by the Company including any meters remote-reading devices wall boxes covers and frames to the meter pits. Megalitre or Ml A megalitre is one million litres or one thousand cubic metres. Non-Domestic Customer A Customer in respect of water supplied otherwise than to Domestic Premises. Non-Domestic Premises Those Premises or Hereditaments which did not fall or would not have fallen within the classification of “domestic” in the Valuation List and the term “non-domestic” when applied to the purposes for which premises are used or the activities carried on at premises shall mean the use of or activities carried on at such non-domestic premises. Non-Metered Charges Charges which do not include an element calculated by reference to the volume of water passing through a meter. North Surrey The area forming part of the Central Region that was supplied by North Surrey Water Limited on 30 September 2000. Notional Rateable Value Where it is not possible to charge a Customer by the standard Rateable Value of the Premises e.g. where a property being charged on a Rateable Value basis has been sub-divided into two or more Premises and it is not reasonably practicable to install a meter a “notional rateable value” based on similar properties in the immediate area will be allocated to the Premises by the Company. Occupier In relation to Domestic Premises includes: i the person who has sufficient control over premises to

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Affinity Water Charges Scheme 2015/2016 Page 9 put him under a duty of care towards lawful visitors ii any person who maintains such premises furnished and ready for habitation iii any person who maintains for residential accommodation premises which do not include exclusive occupation of one or more facilities for cooking washing or sanitation such as bedsits holiday or student hostels or other accommodation for short term accommodation or letting iv the landlord of a house in multiple occupation as defined in Sections 77 and 254 to 259 of the Housing Act 2004 and v the developer or owner for the time being of new premises which are empty and unfurnished and in relation to Non-Domestic Premises includes: vi any entity which carries on a trade business manufacturing or other activity at such premises and vii the person or entity which is the occupier for the purpose of holding a licence to sell alcoholic drinks on such premises. OFWAT The Water Services Regulation Authority. Premises Includes any land or interest in land and any easement or right in to or over land and includes where the context permits land house building or part of building or Hereditament. Rateable Value The value shown in relation to any Premises in the Valuation List at 31 March 1990 or the Notional Rateable Value allocated by the Company in accordance with this Charges Scheme. Reversion Notice Any written notice to the Company cancelling a Measured Charges Notice. Rickmansworth The area forming part of the Central Region that was supplied by Rickmansworth Water Limited on 30 March 1994. Schedule of Charges The schedule of charges appended to and forming part of this Charges Scheme and any reference to the Schedule of Charges shall constitute a reference to the part relevant to the region in which the Premises are situated.

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Affinity Water Charges Scheme 2015/2016 Page 10 Southeast Region The area forming part of the Company’s water supply area as defined in its Instrument of Appointment from time to time that was supplied by Folkestone and Dover Water Services Limited on 30 June 2009. Sprinkler Means a rigid or flexible pipe or similar apparatus and accessories including for the avoidance of doubt trickle irrigation systems drawing water directly or indirectly from the water mains whether by permanent or temporary connection and which is used attended or unattended for dispersing water from more than one outlet in such pipe or apparatus or in more than one direction whilst being operated externally to any House otherwise supplied. Swimming Pool Any kind of pool other than a Leisure Pool or garden ponds inflatable or otherwise which has a capacity of 1000 litres or more and is greater than 1 metre in depth. Valuation List A list for the purpose of rating under PART V of the General Rate Act 1967 in force at 31 March 1990. WIA 1991 The Water Industry Act 1991.

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Affinity Water Charges Scheme 2015/2016 Page 11 4. Metered tariffs and charges A. Metered Charges 1 Customers subject to Metered Charges will be charged Standard Metered Charges unless the Company has determined to charge one of the other metered tariffs in this Charges Scheme. 2 All Metered Charges will be based on installations and meter sizes and types that have been approved or accepted by the Company. 3 Where two or more metered supplies feed the same Premises occupied by the same Customer the standing charge will be made separately for each supply. B. Standard Metered Charges 1 The charges comprise: a an annual standing charge determined in accordance with the Schedule of Charges billed in equal parts according to the billing frequency. The period covered by the standing charge is specified on the bill and will mean that some of the charge is paid in arrears and some in advance. Where Metered Charges take effect part way through a Billing Year the standing charge will be apportioned on a daily basis according to the number of days in that standing charge period b a volumetric charge calculated by multiplying the volume of the water supplied as determined from the meter reading or estimated by the Company including water leaked from any part of the supply pipe by which the customer is supplied by the relevant rate per cubic metre shown in the Schedule of Charges and c in the case of Domestic Premises which become subject to Metered Charges following a change of occupation: i a charge equal to the amount that would have been payable on a Non- Metered basis in respect of the Premises had they not been subject to Metered Charges for the period from the date the Premises became subject to Metered Charges to the date that the meter was installed or ii if the customer elects within 12 months of the date of the first metered bill that includes volumetric charges estimated Metered Charges in respect of the period from the date the Premises became subject to Metered Charges to the date the meter was installed. 2 The Company may in respect of any Billing Year designate any Premises within its water supply area as being subject to Metered Charges on a Seasonal Tariff basis. In these circumstances the volumetric charge payable by Customers will vary according to the season as shown in the Schedule of Charges. The Seasonal Tariff will continue to be payable in respect of any Premises so designated by the Company until it determines

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Affinity Water Charges Scheme 2015/2016 Page 12 otherwise. Customers registered for the WaterSure tariff will continue to benefit from this tariff where applicable. C. Large User Tariff 1 The Large User Tariff is available to Non-Domestic Customers in respect of any set of Eligible Premises where the Customer can demonstrate an annual consumption of water greater than the threshold stated in the tables below. Such Customers are billed on a monthly basis and benefit from a lower volumetric rate reflective of the cost of supply. 2 The Company retains the absolute discretion to determine whether the Large User Tariff applies in respect of Eligible Premises and may make it a condition of eligibility for the Large User Tariff that charges are paid by Direct Debit. 3 A Customer may at any time opt to be charged on the Large User Tariff which if accepted by the Company will apply from the date of application onwards. A Customer may by written notice apply to the Company to change to a different basis of Metered Charges with effect from the date of the notice. A Customer may only give a maximum of one election notice and a maximum of one cancellation notice in any Billing Year. The Company shall have the absolute discretion as to whether a Customer may change to a different basis of Metered Charges. 4 The Large User Tariff comprises different fixed and variable components as shown in the table below. Large User Tariff Volume of water supplied in Billing Year Fixed and variable components Central Region More than 50Ml Southeast Region More than 50Ml East Region 50Ml to 100Ml East Region More than 100Ml Annual standing charge according to meter size as shown in Schedule of Charges Yes Yes Yes Yes Annual fixed large user charge as shown in the Schedule of Charges Yes No Yes Yes Variable volumetric charge for water supplied as shown in the Schedule of Charges Yes Yes Yes Yes

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Affinity Water Charges Scheme 2015/2016 Page 13 5 The following principles apply to the Large User Tariff: a the annual standing charge determined in accordance with the Schedule of Charges will be billed in equal parts according to the billing frequency. The period covered by the standing charge is specified on the bill and will mean that some of the charge is paid in arrears and some in advance b the volumetric charge shown in the Schedule of Charges will be multiplied by the volume of the water supplied as determined from the meter reading or estimated by the Company by the relevant volumetric rate shown in the Schedule of Charges and c where applicable the supplementary fixed charge for each set of Eligible Premises to which the Large User Tariff applies is payable in advance calculated on a daily basis and billed at monthly intervals. D. Mid User Tariff 1 The Mid User Tariff is available to Non-Domestic Customers in respect of any set of Eligible Premises where the Customer can demonstrate an annual consumption of water greater than the threshold stated in the tables below. Such Customers are billed on a monthly basis and benefit from a lower volumetric rate reflective of the cost of supply. 2 The Company retains the absolute discretion to determine whether the Mid User Tariff applies in respect of Eligible Premises and may make it a condition of eligibility for the Mid User Tariff that charges are paid by Direct Debit. 3 A Customer may at any time opt to be charged on the Mid User Tariff which if accepted by the Company will apply from the date of application onwards. A Customer may by written notice apply to the Company to change to a different basis of Metered Charges with effect from the date of the notice. A Customer may only give a maximum of one election notice and a maximum of one cancellation notice in any Billing Year. The Company shall have the absolute discretion as to whether a Customer may change to a different basis of Metered Charges. 4 The following principles apply to the Mid User Tariff: a the annual standing charge determined in accordance with the Schedule of Charges will be billed in equal parts according to the billing frequency. The period covered by the standing charge is specified on the bill and will mean that some of the charge is paid in arrears and some in advance b the volumetric charge shown in the Schedule of Charges will be multiplied by the volume of the water supplied as determined from the meter reading or estimated by the Company by the relevant volumetric rate shown in the Schedule of Charges and

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Affinity Water Charges Scheme 2015/2016 Page 14 c where applicable the supplementary fixed charge for each set of Eligible Premises to which the Mid User Tariff applies is payable in advance calculated on a daily basis and billed at monthly intervals. 5 The Mid User Tariff comprises different fixed and variable components as shown in the table below. Mid User Tariff Volume of water supplied in Billing Year Fixed and variable components Central Region 3Ml to 50Ml Southeast Region 3Ml to 50Ml East Region 5Ml to 25Ml East Region 25Ml to 50Ml Annual standing charge according to meter size as shown in Schedule of Charges Yes Yes Yes Yes Annual fixed Mid User charge as shown in the Schedule of Charges No No No Yes Variable volumetric charge for water supplied as shown in the Schedule of Charges Yes Yes Yes Yes E. Persons chargeable 1 Charges for water supplies are payable by the Occupier of the Premises or the person who uses the supply unless the Company has agreed with another person to accept payment from them. 2 Where there is more than one Occupier for the time being of any premises supplied such Occupiers shall be liable to pay water services charges for those premises jointly and severally.

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Affinity Water Charges Scheme 2015/2016 Page 15 F. Meter readings 1 A meter reading taken by the Company is evidence of the water consumed except where the meter: a has stopped or slowed b has been bypassed or otherwise removed by the customer or c has been tested and found to exceed the prescribed limits of error. 2 In the above cases the Company will estimate the quantity supplied during the period when the meter had stopped failed to register correctly been bypassed or removed. The Water Meters Regulations 1988 shall apply to the adjustment of charges necessitated where the meter has been tested and found to be recording outside the prescribed limits of error. 3 Under the WIA 1991 Customers are obliged to provide access to the Company to read and carry out necessary maintenance to a meter located inside the Premises or otherwise on their Premises. The Company may choose to estimate a reading for billing purposes and will estimate if it has not been possible to read the meter including where access has been denied by the customer. The Customer may provide an actual reading to replace an estimated reading. The Company’s estimates are based on historical data for an equivalent period or the number of Occupiers if known. If this data is not available the estimate will be based on any relevant available information and where possible agreed with the customer with a default consumption based on an occupancy of two persons. If the Customer provides a reading charges will be recalculated on the information supplied. 4 Where the start of a Billing Year falls between two meter readings the total volume recorded for the reading period will be apportioned on a daily basis between the period up to 31 March and the period after that date. Volumetric charges will likewise be calculated at the rates for the two relevant Billing Years. 5 The Company may fit a device for reading meters that are not readily accessible. Depending on the individual circumstances of each case there may be a reasonable and cost-based charge for installing such a device. If there is a discrepancy between the readings of the meter and the device or the Company decides that the continued use of that device is no longer appropriate then the reading of the meter will be used. G. Meter tests and logging 1 The Company offers two services to customers that may be of assistance in determining the cause of an unexpected change in consumption. The first is considered to be the most valuable in such cases. 2 Logging Service: The Company offers a chargeable logging service that may assist customers in determining the reason for unusual or high consumption. The service includes the deployment of an electronic logging device connected to the pulsed output of the meter enabling actual consumption to be recorded at 15-minute intervals. The

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Affinity Water Charges Scheme 2015/2016 Page 16 logger will normally be deployed for a minimum period of 14 days and a full report will be produced for the Customer shortly afterwards. The charge for this service is shown in the Schedule of Charges and this service is highly recommended to any Customer experiencing an unaccounted-for increase in consumption. 3 Meter Testing: A Customer may at any time request in writing that the meter should be tested. The meter to be tested will be exchanged and sent to an independent testing facility. This replacement meter will remain in place regardless of the test result. A fee not exceeding the sum shown in the Schedule of Charges will be payable if the meter is found to be registering within prescribed limits of error. No fee will be payable for tests where the Company decides that a test is necessary. The provisions of the Water Meters Regulations 1988 shall apply to the testing of meters and any adjustments to charges should the meter be found to be registering outside the prescribed limits of error. Further details are available from the Company on its website and on request. H. Leakage 1 The Company will charge for all water passing through the meter including water lost by leakage from the Customer’s supply pipe waste or otherwise except water used for fire fighting purposes see Section 4L. 2 The Company follows a Code of Practice on leakage for Domestic Customers. A copy is available on the Company’s website and on request. The Code of Practice does not cover leakage at Premises that are of a predominantly Non-Domestic nature. Full details of our policy are made available on the Company’s Leak Allowance Claim forms which are also available on the Company’s website and on request. I. Common supplies flats and multi-occupied premises subject to Metered Charges 1 Where: a two or more Premises in separate occupation are served by a supply through one meter and b there is no agreement in force under which one person has agreed with the Company to pay the charges applicable for all of the Premises the Occupiers of each Premises will be jointly and severally liable for the whole of the Metered Charges. 2 The Company in its absolute discretion may elect to apportion the charges between the Occupiers as it thinks appropriate taking account of such factors as may be reasonable in all the circumstances.

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Affinity Water Charges Scheme 2015/2016 Page 17 J. Sub-metering 1 Sub-metering comprises any arrangement where two or more meters measure the amount of water flowing through a private network of pipes and these meters are used by the Company for charging purposes. The Company no longer allows sub-metering where two or more properties are supplied from the same private supply arrangement. Where such arrangements already exist they will be allowed to continue until one of the following occurs: a Water supplied through the Company’s main meter is not paid for. This situation usually occurs as a result of leakage on the network of pipes b The pipework generally deteriorates and is in need of renewal. When this situation occurs the company recommends renewal with separate individual supply pipes and meters or c Further properties are added to a private supply arrangement. 2 Where sub-metering is no longer permitted the following choices are available to the parties connected to the private supply arrangement: a One Customer may assume responsibility for and pay the value of water passing through the first main meter on the private network after the Company’s main b The private network of pipes is altered or replaced so that each Occupier is separately supplied from the Company’s main and individually metered or c If the Occupiers fail to make a choice between the above two options the Company will issue bills to the Occupiers of all premises in equal proportions except where all Occupiers agree in writing an alternative split. 3 Where bills remain unpaid for a prolonged period the Company reserves the right to force a separation of supplies in accordance with its powers under Section 64 of the WIA 1991. K. Discontinuing or transferring a supply 1 A Customer must give at least two working days’ prior notice that he will cease to be the Occupier of any Premises. If he fails to do so he will be liable to pay charges until whichever is the earliest of: a the next scheduled meter reading date b the date the Company is informed by a new Occupier or c 28 days from the date he informed the Company.

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Affinity Water Charges Scheme 2015/2016 Page 18 2 Where a Customer of Premises who is liable to pay Metered Charges vacates the Premises without notifying the Company and a new Occupier takes up residence also without notifying the Company once the Company becomes aware of the new Occupier it will take meter readings to establish average daily use. The average daily use will then be used to calculate charges due from the new Occupier between the date they occupied the Premises and the date of the first meter reading taken thereafter by the Company. L. Water used for fire fighting purposes 1 In accordance with Section 147 of the WIA 1991 no volumetric charge will be made in respect of water used for fire fighting purposes or for the purpose of training persons for fire fighting. 2 Where a supply is solely for the purposes of fire fighting no standing charges are payable. In all other cases standing charges will be payable at the rate appropriate for the meter size as set out in the Schedule of Charges. M. Standby charge for water made available other than for domestic purposes 1 The Company may make available to any Premises a standby or secondary supply for non-Domestic Purposes. All such arrangements will be subject to the Company and Customer entering into an agreement as to the charges and terms on which such supply is made available.

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Affinity Water Charges Scheme 2015/2016 Page 19 5. Metering policy A. Charges to be fixed by reference to volume New Premises 1 The Company requires that charges are fixed by reference to volume for water supplied to Premises: a which have never at any previous time been connected to a supply of water provided for domestic purposes by a water undertaker or by any other authority or body which at that time provided supplies of water in the course of carrying out functions under any enactment and b that are newly constructed on the site of Premises which have been entirely demolished regardless of whether the service pipe by which the supply was previously made has been reused. Premises in an area of water scarcity 2 The Company requires that charges are fixed by reference to volume for water supplied to Premises in an area which has been determined by the Secretary of State to be an area of water scarcity for the purposes of Regulation 31 of the Water Industry Prescribed Conditions Regulations 1999. The Southeast Region was determined by the Secretary of State to be an area of water scarcity for a period of ten years commencing on 1 April 2006. Premises in an area of serious water stress 3 The Company requires in accordance with Section 5A5 that charges are fixed by reference to volume for water supplied to Premises: a in an area which has been determined by the Secretary of State to be an area of serious water stress for the purposes of Regulation 41 of the Water Industry Prescribed Conditions Regulations 1999 and b subject to a programme for the fixing of charges by reference to volume as specified in the Company’s water resources management plan published under section 37B8a of WIA 1991. 4 The conditions set out in Section 5A3 are met in relation to Premises within the Company’s Central Region. 5 The period within which the Company requires charges for water supplied to such Premises to be fixed by reference to volume will be the earliest to occur of the date on or after installation of the meter when: a the Customer requests Affinity Water to fix charges by reference to volume

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Affinity Water Charges Scheme 2015/2016 Page 20 b the Customer and any other person in occupation of the premises at the date the meter is installed ceases to be the Customer or as the case may be in occupation of the premises or c the date of the next meter reading following the expiry of two years from the date of installation of a meter. Premises where there has been a change of occupation or that are empty 6 The Company may require that charges are fixed by reference to volume for water supplied to Premises: a where there has been a change in the persons occupying the Premises such that no person who was in occupation of the Premises before the change remains in occupation after the change or b where charges have not been levied for any period of at least 12 months by reason of the Premises being empty. Use of supply or Premises 7 The Company may require that charges are fixed by reference to volume for water supplied to Premises: a for any purpose other than Domestic Purposes b which are used wholly for business trade or manufacturing or for the exercise of functions by a public authority c that have been newly formed by the division or merger of Premises previously charged on the basis of their Rateable Values d where use of the Premises as a person’s home is not the principal use of the Premises or e where water supplied by the Company to the Premises is used: i for watering a garden other than by hand by means of any apparatus ii for automatically replenishing a pond or a swimming pool with a capacity greater than 10000 litres iii in a bath with a capacity measured to the centre line of overflow greater than 230 litres iv in a shower unit of a type specified under paragraph 4c of the Table to regulation 5 of the Water Supply Water Fittings Regulations 1999 or v in a unit which incorporates reverse osmosis such as certain water softeners.

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Affinity Water Charges Scheme 2015/2016 Page 21 Meter Options 8 Section 5B sets out the right for Customers in certain cases to elect for charging by reference to volume by serving a Measured Charges Notice. 9 Where a Customer consents to measured charges in relation to Premises in which or in any part of which he or another person has his home he shall be treated as having served a Measured Charges Notice under Section 5B. Where metering is impractical or would be unreasonably expensive 10 If the Company determines that it is not reasonably practicable to install a meter so that charges in respect of any Premises may be fixed by reference to the volume of water supplied or to do so would involve the incurring of unreasonable expense: a the provisions of Section 5B shall apply where the Customer has served or is treated as having served a Measured Charges Notice: b in the case of Domestic Customers where the provisions of Section 5A3 would otherwise apply charges will be fixed on the Domestic Assessed Tariff: • immediately where the Domestic Assessed Tariff would be lower than the Customer’s unmeasured Rateable Value charges • two years following the date on which the Company determines that installing a meter is not reasonably practical or would involve the incurring of unreasonable expense where the Domestic Assessed Tariff would be higher than the Customer’s unmeasured Rateable Value charges • immediately on a change of occupation of the Premises or c in all other cases the Company shall fix the Non-Metered Charges payable in respect of the supply to the Premises. B. Meter options Domestic Premises 1 A Customer requiring a meter to be installed free of installation charge at any Domestic Premises may apply for a meter by giving a Measured Charges Notice. An application form for this purpose can be obtained from the Company’s website and on request. Non-Domestic Premises 2 A Customer may apply by completing and returning an application form and an installation fee will be payable at the appropriate rate as set out in the Schedule of Charges. Forms are available from the Company on its website and on request. Contact

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Affinity Water Charges Scheme 2015/2016 Page 22 details are given in Section 2. The Company will endeavour to install the meter within three months of receiving the Customer’s request to proceed. Rights of Tenants to have a meter 3 Where a tenancy applies for 6 months or more a tenant has the right under section 209A of the WIA 1991 to ask the Company to install a water meter. A landlord may not legally prevent an application or the installation of a meter. Their permission is not required by the tenant but the Company recommends that they be informed of the tenant’s intention to apply for a meter. Timescales for installation of meters 4 If the Customer gives the Company a valid Measured Charges Notice by completing and returning an application form available from the Company on its website and on request the Company will endeavour to install a meter within 90 days at one of the locations set out below. If the Company does not install the meter within 90 days unless the delay is due to the Customer: a metered water standing charges will be charged from the 91st day and b consumption charges will be calculated by estimating consumption. A Customer may request an adjustment to this charge if subsequent actual readings show a reduced level of consumption. Impractical or unreasonably expensive installations 5 The Company may decide not to meter a property if installation would involve unreasonable expense or would be impractical. An impractical installation or one that involves unreasonable expense includes as applicable: a where it would be necessary to install more than one meter b where there is no location available to which it would be practical for the Company’s employees to gain access for reading and maintenance purposes For example: in lofts behind or requiring the movement of wall panels or kitchen appliances such as cookers or other heavy furniture behind locked cupboard or security doors or gates to which or in area to which the Company does not have unrestricted access. or c where the customer declines to carry out alterations to their internal plumbing or separation of their supply pipe at their own expense to allow the Company to install a meter. 6 If the Company decides that installation of a meter would involve unreasonable expense: a the Customer or the Company may ask OFWAT to determine whether the Company should install the meter free of charge. Either the Customer or Company may refer to OFWAT for determination any dispute as to whether the installation of a water meter is reasonably practicable

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Affinity Water Charges Scheme 2015/2016 Page 23 b in the Central Region and East Region the Customer may choose whether to transfer to the Domestic Assessed Tariff or remain on Standard Rateable Value charges and c in the Southeast Region the Company will transfer the Customer to the Domestic Assessed Tariff. Meter location 7 The Company is required to ensure that meters are installed so they are reasonably accessible for reading testing inspection and maintenance. A meter installed outside a building will be installed as near as is reasonably practicable either to the boundary of the Premises or to the point where the supply pipe enters the building. A meter installed inside a building will be installed as near as is reasonably practicable to the point where the supply pipe enters the building or to the stop-tap. 8 If it is not reasonably practicable for the Company to install a meter outside the boundary of a Customer’s Premises or the Company would incur unreasonable expense in so doing the Company will notify the Customer of its intention to install a meter within their Premises and will give advanced warning of the intended location by either letter card face to face or telephone. One of the following locations will be used at the discretion of the Company: a as close to the boundary of the Premises as possible. In some cases underground obstructions may require an installation separate to the existing stoptap. If this is in made ground the surface area will be restored but may not necessarily match the existing finish b internally on the rising main usually at the point where the first internal stopcock is located. However the Customer must undertake to give the Company unrestricted access to the property for the purposes of installation maintenance and reading. The Company will not make any alteration to fixtures and fittings without the agreement of the Customer. Where the Customer agrees to the alteration or requests it he will be responsible for the restoration works or c if the Customer objects to the location proposed on their premises the Company will work with the Customer to try to reach an agreement which will not result in an impractical or unreasonably expensive installation. The Company has certain powers of entry as set out in Sections 162 and 172 of the WIA 1991. Miscellaneous Matters Meter Options 9 While the Company prefers all Premises to be individually supplied and metered the Company will in exceptional cases consider a single meter to Domestic Premises which have been sub-divided into two or more separately occupied units provided the Company receives a satisfactory undertaking from one or more persons to pay the water supply charges. Section 4I of this Charges Scheme shall apply. Developers or other individuals considering making alterations to existing premises so as to create one or more new dwellings should contact the Company in advance for advice on requirements for individual pipe work and metering.

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Affinity Water Charges Scheme 2015/2016 Page 24 10 In certain circumstances the Company will consider installing a remote meter reading device but may make an associated charge for this service. Reversion to Non-Metered Charges 11 A Customer who has given a Measured Charges Notice may not give a Reversion Notice if the Premises to which the Measured Charge Notice relates are Premises in respect of which: a Section 5A2 Premises in an area of water scarcity applies b Section 5A3 applies Premises in an area of serious water stress applies or c any of the circumstances set out in Section 5A7d or Section 5A7e are applicable. In practice this means that only Customers whose Premises are located in the East Region may revert to Non-Metered Charges except where Section 5A7d or Section 5A7e are applicable. 12 Where Section 5B11 does not apply a Customer who has given a Measured Charges Notice may give a Reversion Notice within 12 months of the date of installation of the meter or such later date as the Company may in its absolute discretion determine or within 30 days of receiving the second account including volumetric charges whichever is the later if : Either a he is the Customer who gave the Measured Charges Notice b he is still the Customer and c he has not given a previous Measured Charges Notice for the Premises Or d he is not the Customer who gave the Measured Charges Notice but e any person in occupation of the Premises when the Measured Charges Notice was given remains in occupation and f neither he nor the person who gave the Measured Charges Notice has previously given a Measured Charges Notice for the Premises. 13 Where a valid Reversion Notice has previously been served and all Occupiers residing in the Premises at the time of reversion have vacated the Premises charges for the new Occupier will be reverted to a measured basis. In such cases the new Occupier will not have the right to serve a Reversion Notice.

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Affinity Water Charges Scheme 2015/2016 Page 25 14 To assist a Customer in deciding whether to give a Reversion Notice the Company will issue bills at approximately six monthly intervals. The Company will not make any other reading of the meter but a Customer may wish to take their own readings. 15 If the Company receives a valid Reversion Notice it will revert to the original method of charging within five working days but will not remove the meter unless the Customer pays the cost of removal. Domestic Assessed Tariff where metering is not possible 16 Where the Company is unable to install a meter because it is impractical access has been denied or it involves unreasonable expense as set out in Section 5B5 it will offer to charge the Customer from the date of the original meter survey on the Domestic Assessed Tariff set out in Section 6E. The Company may later withdraw the Domestic Assessed Tariff where it deems that metering becomes possible at reasonable cost. C. Meter installation and maintenance 1 In general and subject to Section 5B5 the Company will be responsible for the costs of installing a meter at existing Premises supplied on a non-metered basis where the meter is installed at the Company’s request or where a Domestic Customer gives a Measured Charges Notice. In all other cases Customers are responsible for the cost of installation. 2 The Company will own and maintain the Metering Equipment. 3 Any wilful removal of interference with or damage to a meter by a Customer is illegal. Only employees or authorised agents of the Company are authorised to install remove or replace meters. The Customer must take all reasonable and proper care of the Metering Equipment and allow reasonable access to the Company. 4 If any damage or loss of the meter occurs because the Customer fails to do so the Company may require the Customer to repay all reasonable expenses incurred in repair or replacement. Customers must ensure that the meter is not covered or obstructed in any way and the Company reserves the right to levy a charge covering the costs involved in obtaining access to the meter or in re-siting an existing meter. Where necessary the Company may instigate legal proceedings to recover all costs incurred including Metered Water Charges. D. Adoption of meters installed by Customers 1 The Company may but is not obliged to agree with a Customer to adopt a meter installed otherwise than by the Company if: a the meter meets all relevant regulations governing accuracy and technical suitability

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Affinity Water Charges Scheme 2015/2016 Page 26 b the meter is installed in accordance with the Water Supply Water Fittings Regulations 1999 c the meter is installed in a location that is suitable for the Company to gain access to read. An unsuitable location includes the locations listed in Section 5B5b and d the meter registers all water used at a single Premises.

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Affinity Water Charges Scheme 2015/2016 Page 27 6. Non-metered tariffs and charges A. Non-Metered Charges 1 Customers not subject to Metered Charges will be charged Standard Rateable Value Charges unless the Company has determined to charge one of the other Non-Metered Charges below. The charge will be payable in respect of the whole of any period of occupation of Premises. Where a period of occupation of Premises is less than the full year charges shall be apportioned on a daily basis. 2 Where water is supplied separately for a House within the curtilage of Premises otherwise used for Non-Domestic Purposes and which has a separate supply for those purposes the House shall be treated as a separate hereditament. Where applicable the Rateable Value of that house shall be assessed by the Company. B. Standard Rateable Value Charges 1 The charges comprise: a an annual standing charge determined in accordance with the Schedule of Charges payable on a daily basis on all properties with a Rateable Value of greater than £50 b a charge calculated by multiplying the Rateable Value of the Premises by a rate in the £ based on the location of the Premises and as specified in the Schedule of Charges and c if applicable a charge for a Sprinkler and d if applicable a charge for a pond Swimming Pool or Leisure Pool as set out in Section 6C. 2 For Premises having a Non-Metered water supply prior to 1 April 1989 and for which no Rateable Value is shown a fixed charge per annum and proportionately for any part of a year will be payable as shown in the Schedule of Charges. C. Non-Metered charges for sprinklers hosepipes pools ponds hot tubs and spa baths 1 Where Premises are not or cannot be metered and have or use: a a Sprinkler b a Swimming Pool or Leisure Pool with a capacity greater than 1000 litres or

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Affinity Water Charges Scheme 2015/2016 Page 28 c a Bath Hot Tub Spa Bath or other similar recreational water using apparatus with a total capacity greater than 230 litres or d a Hosepipe the relevant annual Non-Metered charge for such facilities will be payable as set out in the Schedule of Charges. This charge will apply until such time as the Premises becomes metered. 2 Ponds are not subject to Non-Metered charges except where they would otherwise be required to be metered but cannot be for technical reasons. D. Notional Rateable Values 1 Notwithstanding the Company’s right to meter in accordance with Sections 5A and 5B in the cases listed below the Company may choose but is not obliged to assign a Notional Rateable Value allocated by reference to similar properties in the area where the profile of Rateable Values appears to correlate with the area in question. This will include the following where: a Premises did not have a Rateable Value at 31 March 1990 including but not limited to places of worship b Premises are created from the sub division of premises having a Rateable Value at 31 March 1990 c Premises are created from the merger of two or more premises with individual Rateable Values. In the absence of clear evidence to the contrary the Notional Rateable Value will be taken as the sum of the individual Rateable Values of the properties that have been merged d Premises have a Rateable Value of less than £50 which is not representative of other similar properties in the Valuation List and e Premises where building works have increased the property size and floor space by greater than 50 of the previous floor size. 2 In all of the above cases the Customer retains the right to apply for the meter option scheme as outlined in Section 5B. E. Domestic Assessed Tariff 1 The Company recognises that there are some Domestic Premises where it is not possible to install a meter for technical reasons or because it would involve unreasonable expense. In these cases the Domestic Assessed Tariff will apply unless the Company agrees that the Premises should continue to be charged on a Rateable Value basis.

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Affinity Water Charges Scheme 2015/2016 Page 29 2 The Company reserves the right to apply this tariff: a where the Company has power to fix charges by reference to volume but access to fit a meter has been denied or where the customer has failed to respond to the Company’s requests for access. In such cases the Company will assume the Premises are occupied by four or more persons until such time as the Customer provides access to the Premises and following which either a meter will be installed and charges fixed by reference to volume or assessed charges will be revised in accordance with the other parts of this section b in any circumstance where it would no longer be appropriate to continue to use the Rateable Value of the Premises as the basis for charging and the installation of a meter would be impracticable or involve unreasonable expense. 3 The tariff is a fixed annual charge set out in the Schedule of Charges determined by reference to the number of persons in the household and the same fixed annual charge is applicable to each of the Company’s three Regions. 4 The fixed annual charge reflects: a the relevant annual meter standing charge shown in the Schedule of Charges and b an assessed annual consumption charge calculated by multiplying the assessed annual consumption shown in the table below by the relevant rate per cubic metre shown in the Schedule of Charges. Number of persons in occupation Assessed annual consumption cubic metres Central Region and Southeast Region East Region 1 65 42 2 115 78 3 169 115 4 or more 223 169 5 The Company will ask the Customer to declare the number of persons permanently residing at the Premises and in the absence of information to the contrary will use the figure provided by the Customer to determine the appropriate assessed consumption charge. The Customer must inform the Company of any changes from time to time.

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Affinity Water Charges Scheme 2015/2016 Page 30 6 If the Customer does not declare the number of persons permanently residing at the Premises the Company will use the highest assumed consumption charge for the Premises shown in the Schedule of Charges until such time as the Customer provides a declaration. 7 Charges payable under Section 6C of this Charges Scheme are payable in addition to the Domestic Assessed Tariff. F. Commercial assessed charges Central Region and Southeast Region 1 This tariff is available to Non-Domestic Customers in the Central Region and Southeast Region if the Customer applies or the Company proposes to install a meter and the Company determines it is not reasonably practical to do so. 2 The charges comprise: a An annual standing charge as shown in the Schedule of Charges and b For Premises in the Central Region except where Section 6G2c applies a charge calculated by multiplying 1 the number of people working at the Premises by 2 the assessed annual consumption per person for the relevant band shown in the table below by 3 the rate per cubic metre shown in the Schedule of Charges. The Company will determine the appropriate band based on the Customer’s declaration of its business activity at the relevant Premises and the Standard Industrial Classification applicable to that activity. Higher band numbers reflect those businesses likely to have greater water use and where the Company deems it appropriate it may require an inspection of the relevant Premises to determine the assessed annual consumption. SIC Code Band Band 1 Band 2 Band 3 Band 4 Band 5 Assessed annual consumption cubic metres per person 15 50 100 200 By inspection c For Premises in the Central Region where the Customer was charged commercial assessed charges on the basis set out in this Section 6F2c at 31 March 2000 and has continued to be so charged a charge calculated by multiplying 1 the number of people working at the Premises subject to a minimum of two by 2 15 cubic metres by 3 the rate per cubic metre shown in the Schedule of Charges.

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Affinity Water Charges Scheme 2015/2016 Page 31 d For Premises in the Southeast Region a charge calculated by multiplying 1 the number of people working or residing at the Premises by 2 the assessed annual consumption per person shown in the table below by 3 the rate per cubic metre shown in the Schedule of Charges. Number of people at the Premises Assessed Annual Consumption cubic metres Full time employees no canteen facilities 6 Full time employees with canteen facilities 10 Residential occupation 35 For part time employees 50 of the above allowances apply 3 Where consumption is not realistically reflected by the number of employees for example in a Public House the Company will assess a charge based on whatever information is available to it about that Customer’s usage. Further details are available from the Company’s website and on request. G. Access to communal facilities 1 Where Premises do not have a water supply but water for any purpose is available to the Occupier of those Premises from communal facilities by virtue of his occupation of the Premises the Occupier of the Premises will be liable to pay the Standard Rateable Value Charges as set out in Section 6B. H. Common supplies 1 Where two or more Houses or other multi-occupancy Premises occupied by different Customers are supplied with water by a common supply pipe the Occupier of each such House or Premises shall be liable to pay the same water supply charges as if he had been supplied with water by a separate pipe. 2 Where a common supply pipe supplies water to Premises with a single Rateable Value all Occupiers of the Premises covered by the Rateable Value will be jointly and severally liable for the whole of the charges applicable to the Premises. 3 The Company in its absolute discretion may elect to apportion the charges between the Occupiers as it thinks appropriate taking account of such factors as may be reasonable in all the circumstances.

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Affinity Water Charges Scheme 2015/2016 Page 32 I. Persons chargeable 1 Charges for water supplies are payable by the Occupier of the Premises or the person who uses the supply unless the Company has agreed with another person to accept payment from them. 2 Where there is more than one Occupier for the time being of any Premises supplied all such Occupiers shall be liable to pay water services charges for those Premises jointly and severally. J. Discontinuing or transferring a supply 1 A Customer should give at least two working day’s prior notice that he will cease to be the Occupier of any non-metered Premises. 2 A new Customer’s liability for Charges arises either on the commencement of a lease or the completion of any transfer of the legal interest. Refunds of Charges paid by the previous Customer affecting the current Billing Year will be made on a daily pro-rata basis. Any Charges due but unpaid prior to a new Customer occupying the Premises shall remain the responsibility of the previous Customer and payable forthwith. 3 A new Occupier who fails to advise the Company of their occupation of Premises for any period of time will nonetheless be liable to pay charges from the earlier of the date they actually occupied the Premises or the date the lease or legal interest took effect.

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Affinity Water Charges Scheme 2015/2016 Page 33 7. Charges for vulnerable customers A. WaterSure Tariff 1 Under various regulations Metered Domestic Customers in certain prescribed circumstances are eligible to be charged no more than the average household charge as shown in the Schedule of Charges. This applies to both water and sewerage charges. An outline of the scheme is given below and an application form is available from the Company by calling 0345 357 2406 or emailing helpinghandsaffinitywater.co.uk. The scheme is subject to change in accordance with new legislation as it arises from time to time. 2 The Company is required to assess the eligibility for assistance of any Customer who applies and to take reasonable steps to verify the Customers entitlement. This may include checking claims with third parties such as Jobcentre Plus or the Customers doctor. 3 To help Customers manage their water use and to promote the efficient use of water the Company may require an audit of water use at the Premises. 4 A Customer who successfully applies for assistance will be charged in accordance with this section. This may be paid by instalments over the year. The Company will carry out an annual reconciliation to ensure that the Customer is charged the lesser of the average household charge shown in the Schedule of Charges or the charges that would otherwise be payable on a normal metered basis. Circumstances in which assistance will be given 5 Assistance will be given only where eligibility is established under Section 7A6 and: a the Premises are subject to Metered Charges b the Premises are occupied as the Customers only or principal home c where the Premises are not used solely as a Customers home the other use is not the principal use of the Premises d a Sprinkler hosepipe or any other apparatus for garden watering is not in use at the Premises unless held in the hand at all times and e a Swimming Pool or pond with a capacity greater than 10000 litres designed to be replenished by automatic means is not in use. Eligibility for assistance 6 A Customer is entitled to assistance if he or another person residing with him in the Premises “the qualifying person” can prove entitlement to receive any of the benefits or tax credits as defined in the regulations in Section 7A6 a to e below and can prove that one or both of the conditions in Section 7A6 f and g below are met:

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Affinity Water Charges Scheme 2015/2016 Page 34 a under Part VII of the Social Security Contributions and Benefits Act 1992: i council tax benefit ii housing benefit iii income support iv disabled persons tax credit v working families tax credit b income-based job-seekers allowance under section 14 of the Jobseekers Act 1995 c state pension credit under the State Pension Credit Act 2002 d under Part 1 of the Tax Credits Act 2002— i child tax credit if it includes an amount in respect of the individual element of child tax credit ii working tax credit e income-related employment and support allowance payable under Part 1 of the Welfare Reform Act 2007. f the qualifying person can prove entitlement to receive Child Benefit as defined in the relevant regulations for three or more children under the age of 19 who reside at the Premises or g the qualifying person or any other person who normally resides in the Premises is diagnosed by a suitably qualified medical practitioner as suffering from any one of the following medical conditions and is obliged to use a significant additional volume of water as result of the relevant condition: i desquamation flaky skin loss ii weeping skin disease eczema psoriasis varicose ulceration iii incontinence iv abdominal stoma v renal failure requiring dialysis at home excluded where a contribution to costs is made by a Local Health Authority vi Crohn’s disease vii Ulcerative colitis or viii any other medical condition for which a qualified medical practitioner has provided a certificate confirming the requirement for additional water use. 7 In addition in the case of three children under the age of 19 the Company will also consider applications where the person receiving the qualifying benefit is not the same

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Affinity Water Charges Scheme 2015/2016 Page 35 person who receives the child benefit in respect of those children provided they are permanently resident in the same address. Proof of entitlement to assistance 8 The Company may refuse an application for assistance: a if it is not supported by a copy of the latest notice of entitlement confirming eligibility for one of the benefits or tax credits referred to in Section 7A6 or b if the latest notice of entitlement: i in the case of a benefit is dated more than 12 months before the date of application ii in the case of a tax credit is dated more than six months before the date of application: or c if applicable the latest notice of entitlement confirming entitlement to receive Child Benefit for three or more children under the age of 19 and residing at the Premises is not produced. 9 If applicable the Company is entitled to require the application to be supported by the following relevant information: a the name of the patient b details of the medical condition on which the application is based and its impact on increased water consumption at the Premises c the date on which the certificate was given and d the name and address of the medical practitioner providing the certificate. 10 The Company is not liable to pay any medical practitioner’s fees for provision of a certificate in support of an application based on any condition that is not specifically listed in Section 7A6. Period of entitlement to assistance 11 Assistance under the WaterSure Scheme will begin from the start of the billing period in which the application is made and end: a either 12 months later unless that is part way through a billing period in which case it will end at the end of that billing period or b if the Customer ceases to be eligible for assistance before this time the end of the billing period in which eligibility ceases. 12 The billing period covers approximately six months beginning on the date the meter is read and ending when the meter is next read. 13 A Customer wishing to remain on the WaterSure Scheme must renew his application for assistance annually. The Company will send a notice reminding the Customer of the need to reapply.

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Affinity Water Charges Scheme 2015/2016 Page 36 B. Low Income Fixed Tariff LIFT 1 The Company operates LIFT to provide assistance to Domestic Customers who the Company is satisfied are unable to afford charges that would otherwise apply for the services provided by the Company and that it is appropriate in all the circumstances to support through this Charges Scheme. 2 LIFT has been developed having regard to Defra’s: Guidance to water and sewerage undertakers and the Water Services Regulation Authority under Section 44 of the Flood and Water Management Act 2010 - June 2012. 3 LIFT is a fixed annual charge is shown in the Schedule of Charges. No other rebates or allowances will apply to those Customers on LIFT. The Company may withdraw LIFT from any Customer whose water usage the Company determines to be excessive having regard to the number of occupants of the Premises and for this purpose may install a meter to monitor water usage. Application of Tariff 4 For eligible Customers whose supply is metered LIFT will apply unless the Standard Metered Charges payable for the relevant Billing Year would be lower - in which case the Customer may request the Company to revert back to Standard Metered Charges. 5 For eligible Customers whose supply is not metered LIFT will apply instead of the relevant Non-Metered Charges otherwise payable in respect of the Premises. Where such Premises become subject to Metered Charges in accordance with Section5A3 the Company will offer a free home water audit to support eligible Customers reduce their water consumption. Circumstances in which assistance will be given 6 Assistance will be given only where eligibility is established under Section 7B7-9 and: a the Premises are occupied as the Customers only or principal home b where the Premises are not used solely as a Customers home the other use is not the principal use of the Premises c a Sprinkler hosepipe or any other apparatus for garden watering is not in use at the Premises unless held in the hand at all times and d a Swimming Pool or pond with a capacity greater than 10000 litres designed to be replenished by automatic means is not in use. Eligibility for LIFT 7 A Customer is eligible for LIFT if he or another person residing with him in the Premises “the qualifying person” satisfies the Company that:

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Affinity Water Charges Scheme 2015/2016 Page 37 a the applicant’s household is not able to afford a level of payment that meets their current annual bill for services provided by the Company to the Premises and b it is appropriate in all the circumstances for the Company to provide support to the Customer through LIFT. 8 The Company may from time to time publish guidelines as to: a the amount of household income or the receipt of certain types of benefits or tax credits which might indicate that the applicant’s household is not able to afford a level of payment that meets their current annual bill for services provided by the Company to the Premises and b such other factors it will take into account in determining whether it is appropriate to provide support to customers through LIFT. 9 The Company’s decision about a Customer’s eligibility for LIFT will be final. Requirements for Application 10 The application must: a be made to the Company by the Customer or the qualifying person b be supported by reasonable evidence of qualification for assistance c be supported by a completed means assessment in a form prescribed by the Company relating to the entire income of those residing at the premises and such other evidence as the Company may demand and d contain the applicant’s consent to the Company should it consider it appropriate seeking verification of the information provided in the application from such agencies or organisations that in the Company’s reasonable opinion would be able to verify such information. 11 The Company may require the applicant to give a debt advice or other agency recognised and approved by the Company permission to act on his or her behalf in assessing eligibility for LIFT or to provide such other information in such format as the Company may from time to time approve. In this case: a the applicant must complete the means assessment with the help of the debt advice or other agency that is acting on his or her behalf and b the debt advice or other agency must provide information to the Company via a completed means assessment form or such other form as may be approved by the Company. 12 The information provided by the Customer or the debt advice or other agency will be reviewed by the Company and the Company will determine whether it is satisfied that the assessment made about the ability of the applicant’s household to pay is accurate and demonstrates to the Company’s reasonable satisfaction that its eligibility criteria have been met.

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Affinity Water Charges Scheme 2015/2016 Page 38 Period of entitlement to assistance 13 Where an application is accepted by the Company charges in respect of such Premises will starting from the commencement of the billing period in which the application is made be fixed by reference to LIFT. 14 A Customer wishing to remain on LIFT must renew his application for assistance annually. The Company will send a notice reminding the Customer of the need to reapply. 15 If the successful applicant does not reapply as and when required by the Company or fails to provide the necessary evidence or provides evidence to show that their financial situation has improved the Company reserves the right to remove LIFT and apply standard charges. 16 If an applicant is not successful then no further application for eligibility may be made by the applicant until six months has elapsed or there has been a material change of circumstance in the Customer’s financial circumstances. 8. Payment terms A. Metered Charges - Domestic Customers 1 The Company’s policy is to bill Domestic Customers subject to Metered Charges approximately every six months. The Company will give reasonable notice if it intends to change the billing frequency. The dates by which payment is due vary according to the payment method and are shown in the table below. Billing Frequency Payment Method Due Half-Yearly Direct Debit As and when billed or in 12 equal monthly instalments to be made on 1 st 8 th 15 th or 22 nd of each month. Half-Yearly Other than by Direct Debit Either i As and when billed or ii by multi- instalments as agreed with the Company excluding Credit Cards 2 Accounts are payable on demand in advance but Domestic Customers who are subject to Metered Charges may choose to pay by 12 equal monthly instalments.

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Affinity Water Charges Scheme 2015/2016 Page 39 3 Domestic Customers may choose to pay by instalments using a payment card subject to minimum transaction value a booklet of payment stubs or a standing order arrangement either by: a weekly or fortnightly instalments of equal amounts or b weekly instalments of variable amounts. 4 The Direct Debit and Credit/Debit Card payment methods are not available for weekly or fortnightly instalments and the Company may withdraw an instalment option if any instalment is not paid on the due date. B. Non-Metered Charges – Domestic Customers 1 The Company’s policy is to bill Domestic Customers subject to Non-Metered Charges approximately once a year. Non-Metered Charges are due in advance on 1 April but customers have a choice of payment frequencies as set out in the table below. Frequency Payment Method Due Annual Direct Debit D/D 1 st 8 th 15 th or 22 nd April Annual Other than by D/D By 1 st April or a completed D/D form received by this date. Half-Yearly Direct Debit 1 st 8 th 15 th or 22 nd April and 1 st 8 th 15 th or 22 nd October. Half-Yearly Other than by D/D First payment by 8 th April and second by 8 th October or a completed D/D form received by 8 th April. 10 Instalments Direct Debit D/D Payments to commence on 1 st 8 th 15 th or 22 nd April. Last payment on 1st 8 th 15 th or 22 nd January as appropriate. 10 Instalments Other than by D/D 1 st April to 1 st January. Multi- Instalments Other than by D/D or Credit/Debit Card As agreed with the Company 2 Accounts are payable on demand in advance but Domestic Customers may choose to pay by 10 equal monthly instalments.

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Affinity Water Charges Scheme 2015/2016 Page 40 3 In addition Domestic Customers may choose to pay in instalments using a payment card subject to minimum transaction value a booklet of payment stubs or a standing order arrangement either by: a weekly or fortnightly instalments of equal amounts or b weekly instalments of variable amounts. 4 The Direct Debit and Credit/Debit Card payment methods are not available for weekly or fortnightly instalments and the Company may withdraw an instalment option if any instalment is not paid on the due date.

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Affinity Water Charges Scheme 2015/2016 Page 41 C. Metered Charges – Non-Domestic Customers 1 The Company’s policy is to bill Non-Domestic Customers subject to Metered Charges monthly or half-yearly. The Company will give reasonable notice if it intends to change the billing frequency. Billing Frequency Payment Method Due Half-Yearly Direct Debit As and when billed or in 12 equal monthly instalments to be made on 1 st 8 th 15 th or 22 nd of each month. Half-Yearly Other than by Direct Debit Either i As and when billed or ii by multi- instalments as agreed with the Company excluding Credit Cards Monthly Direct Debit 12 variable instalments As and when billed on 1 st 8 th 15 th or 22 nd of each month Monthly Other than by Direct Debit 12 variable instalments As and when billed. 2 Metered Charges are payable on demand but Non-Domestic Customers may choose to pay by 12 equal monthly instalments. 3 Arrangements for Non-Domestic Customers on the Company’s Large User Tariff or Mid User Tariff are set out in Section 4 of this Charges Scheme. D. Non-Metered Charges - Non-Domestic Customers 1 Non-Domestic Customers subject to Non-Metered Charges will be billed once a year. Non-Metered Charges are due in advance on 1 April but customers have a choice of payment frequencies as set out in the table below.

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Affinity Water Charges Scheme 2015/2016 Page 42 Frequency Payment Method Due Annual Direct Debit D/D 1 st 8 th 15 th or 22 nd April Annual Other than by D/D By 1 st April or a completed D/D form received by this date. Half-Yearly Direct Debit 1 st 8 th 15 th or 22 nd April and 1 st 8 th 15 th or 22 nd October. Half-Yearly Other than by D/D First payment by 8 th April and second by 8 th October or a completed D/D form received by 8 th April. 10 Instalments Direct Debit D/D Payments to commence on 1 st 8 th 15 th or 22 nd April. Last payment on 1 st 8 th 15 th or 22 nd January as appropriate. 10 Instalments Other than by D/D 1 st April to 1 st January. Multi- Instalments Other than by D/D or Credit/Debit Card As agreed with the Company 2 Accounts are payable on demand in advance. Non-Domestic may choose to pay by 10 equal monthly instalments as set out in the table above.

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Affinity Water Charges Scheme 2015/2016 Page 43 9. Payment methods other policies and useful information A. Payment methods 1 The following payment methods are available to Customers: a Direct Debit b Via our website c Credit and Debit Cards using either our website facility or by phone most cards except Electron or American Express are accepted. The Company reserves the right to levy an administration fee for credit card transactions d Bank Giro e National Giro Bank f Standing Order A form is available on the Company’s website and on request g Post Cheque or Postal Order h Telephone and Online Home Banking i Payment cards available for use free of charge at any PayPoint™ enabled retail outlet and subject to a minimum transaction value of £3.50 and a maximum transaction value of £99.00 j Bacs payment for Non-Domestic customers k PINGIT- payment by mobile device and j Such additional methods of payment as the Company may make available from time to time. 2 Payments made via Bank Giro are free if made at a branch of Barclays Bank within the Company’s supply area or at a branch of the Customer’s own bank and can be made by either cash or cheque. Payments via National Giro Bank at the Post Office are subject to a fee at the time of payment which is set by the Post Office. 3 The Company has an arrangement with certain local authorities and other landlords which collect charges for water services from their tenants. In this case Customers will not receive a bill from the Company but will be charged by their local authority or landlord an amount in addition to their rent to cover water charges. 4 For Domestic Customers in receipt of certain Benefits or Tax Credits and who are in arrears the Company will accept payment through the direct payment scheme known as “Water Direct” operated by the Department for Work and Pensions. A Customer wishing to take advantage of this scheme should contact the Company to request an application form which is also available on the Company’s website. The Company can also make an application on their behalf.

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Affinity Water Charges Scheme 2015/2016 Page 44 5 In the case of a Domestic Customer who moves into a non-metered property within the Company’s supply area where the Company elects to fix charges by reference to volume following the change of occupation the Company may offer the facility to make payments “on account” towards charges for the new property irrespective of whether any bill has yet been issued in respect of the new premises. This will continue unless the customer terminates the arrangement. Once a meter is installed a bill will be issued and the balance and future amounts to be collected from the customer will be reviewed and adjusted where necessary. 6 The Company will accept payment in Euros no other Foreign Currency is accepted and the relevant exchange rate prevailing at the time of receipt of payment will apply. Any shortfall or benefit will be debited or credited to the customers account accordingly. The cost of handling and processing the transaction will be borne by the Customer in addition to the actual payment being made. B. Collection of outstanding charges 1 The Company’s policy is to enforce payment of charges demanded. If the Company does not receive an instalment payment by the 14 th of any month or the due date for Direct Debit instalments a reminder notice will be sent. If more than one instalment is overdue the instalment facility will be withdrawn and the outstanding balance will become due immediately. 2 Normally a period of 14 days will be allowed after a non-instalment payment falls due before a reminder notice is issued. If payment is not then received the whole of the annual charges remaining unpaid will become due and payable. 3 For Domestic Customers who do not have a poor payment history the Company will send as a minimum a bill final notice and pre-claim letter before passing the account to a debt collection agency which may instigate court proceedings on the Company’s behalf. The cycle of actions the Company takes is determined based upon previous payment history and may not include some actions. Customers will be charged a fee set out in the Schedule of Charges if a debt collection agency is appointed to recover outstanding charges. 4 Non-Domestic Customers will if there has not been a previous poor payment history be sent a bill final notice and disconnection notice before the Company disconnects the supply and/or passes the account to a Debt Collection Agency who may instigate court proceedings on the Company’s behalf. If there has been a poor payment history the Company may exclude some actions. If a non-domestic supply is disconnected for non- payment all charges and costs incurred by the Company must be paid in full before the supply will be restored. Where a Non-Domestic supply cannot be disconnected a charge will be made for the costs of visiting a property to collect unpaid charges as shown in the Schedule of Charges. 5 An administration fee shown in the Schedule of Charges will be levied where cheques or direct debit payments are returned unpaid. This charge will be made for all failed transactions.

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Affinity Water Charges Scheme 2015/2016 Page 45 6 The Company follows a Code of Practice on Debt for Domestic Customers and a copy is available on the Company’s website and on request. C. Security deposits non-domestic properties 1 The Company reserves the right to require Non-Domestic Customers to provide a security deposit in cash or some other form of security reasonably acceptable to the Company equivalent in the case of monthly billed customers to three months average charges and to eight months average charges in the case of customers billed six monthly “the Security Deposit”. Average charges will normally be based upon those payable in the previous year or in the case of new customers based on a reasonable estimate of charges to be paid in the current year. The Security Deposit may be required where the Company considers it reasonably appropriate having regard to the customer’s payment history charges due or outstanding to the Company the customer’s credit rating if any and financial resources and any other material factors relevant to the customer’s ability or willingness to pay for services provided “the Credit Rating”. The requirement for security may be reviewed by the Company or at the request of the customer to reflect changes in the volume of services provided or changes to the Credit Rating. Where a Credit Rating improves the Security Deposit may be cancelled and any money deposited repaid. Where a Customer’s Credit Rating deteriorates the Company may require the Customer to provide the Security Deposit. Interest will be paid by the Company on any cash paid to the Company as the Security Deposit at the rate applying to sums deposited as security under s424 of the WIA 1991. D. Backdating of unbilled charges 1 Where the Company discovers that a Customer has not been billed for all or part of their water and/or sewerage services it is the Company’s policy to levy backdated charges for those services according to the nature of the situation and the type of Customer as follows: 2 Where a Domestic Customer could not reasonably have known of the unbilled charges due to the Company’s error the unbilled charges will be levied back no further than the start of the current Billing Year. 3 In all other cases: a the Limitation Act 1980 will apply to limit the period of back billing b where the supply is metered and meter readings are not available to cover the relevant period of back billing the Company will assess the volume of water consumed during that period by reference to the current daily consumption but may make an allowance in respect of such charges where the Customer provides evidence that daily consumption during the relevant period of back billing would have been materially lower than current daily consumption and c where the supply is not metered the charges payable will be determined by reference to the Rateable Value of the Premises supplied.

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Affinity Water Charges Scheme 2015/2016 Page 46 4 If as a result of a meter proved to have been registering outside of the prescribed limits of accuracy the Customer has not been billed or has been under-billed the Company will levy charges in accordance with The Water Meters Regulations 1988. 5 The tariffs used to calculate the charges payable for the relevant period of back billing will be the relevant tariffs for the Billing Years for which the period of back billing is made. All charges that are back billed will include all fixed and variable charges relevant to the supply made to the Premises. E. Interest 1 If the Company commences legal proceedings to recover any outstanding debt then it will include within its claim in accordance with Section 69 of the County Courts Act 1984 a claim for interest. Interest will be claimed on the debt outstanding at the rate from time to time specified under the Act from the date the debt became due to the date of issue of the proceedings and in addition up to the date of the Court’s Judgment or earlier payment whichever comes first. F. Charges and discretionary allowances for empty premises 1 Charges remain payable if Premises are vacant except in certain limited circumstances where the Company may waive all or part of the charges. These circumstances include situations where the Premises supplied are empty due to death long term hospitalisation and long term illness. Further details are available on request. 2 If an allowance is issued to any Customer and our inspection finds that the Premises are in fact occupied full charges will be levied back to the last known date of occupation. G. Liability for charges in cases of bankruptcy and insolvency 1 In this Section 9G a “Relevant Event” shall in relation to a Customer of Premises supplied with water mean the occurrence of any event set out in Section 2331 or 3721 of the Insolvency Act 1986 or the making of a debt relief order under Section 251E of that Act. 2 If at the date of the Relevant Event the Customer remains in occupation of Premises in respect of which any debt for water charges was made subject to the Relevant Event: i that debt will be limited to charges outstanding up to the date of the Relevant Event ii any charges outstanding in respect of the current Billing Year will be apportioned on a daily basis up to and including the date of the Relevant Event and

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Affinity Water Charges Scheme 2015/2016 Page 47 iii any charges for services provided after the Relevant Event shall become due on the next day of occupation after the Relevant Event and will be payable by the person responsible for the payment of water charges in respect of the Premises in question on the same terms as payments would apply had the property been newly occupied on that day. H. Value Added Tax “VAT” 1 Value Added Tax is payable at the standard rate on water supply charges to all industries within Standard Industrial Classification SIC Categories 1 to 5 based on the 1980 SIC. Details of these categories and the individual codes within them are available from the Company on its website and on request. Companies are requested to register their SIC code with the Company as promptly as possible in order to avoid incorrect charging of VAT. This is done by completing the Company’s “VAT Declaration” form. The form will normally be issued with the Customer’s first bill when a new commercial account is opened however it is also available on the Company’s website and on request. Contact details are given in Section 2. 2 In accordance with the guidance issued by Her Majesty’s Customs and Excise The Company will charge VAT on all commercial water supplies at the standard rate until such time as the business occupying the Premises supplied provides written confirmation via the above mentioned form that their supply should be zero-rated for VAT. The Company will not make any refund of VAT paid in error for any period of more than three years. 3 Where VAT is payable on any other charges levied by the Company this is shown in the Schedule of Charges. I. Supply Pipe Repair Scheme 1 Maintenance and repair of supply pipes are the responsibility of all the occupiers of the Premises receiving a supply of water through them. The Company’s responsibility for pipe-work ends at the boundary of the public highway. 2 The Company currently operates a supply pipe repair scheme available to Domestic Customers only details of which are available on request. J. Determining disputes 1 If a Customer is dissatisfied with the level of service provided and wishes to make a complaint the Company operates a complaints procedure which has been agreed with the industry regulator OFWAT. 2 The Company aims to answer all written complaints within 10 working days and most within five working days. Further information and a copy of the procedure are available from the Company on its website and on request.

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Affinity Water Charges Scheme 2015/2016 Page 48 K. Non-owner occupiers 1 Section 144C of the WIA 1991 sets out the circumstances in which an owner of residential premises as defined therein may become jointly and severally liable with the occupiers of those premises for charges levied by the Company. When brought into effect the Company’s policy will be to apply Section 144C in such circumstances notwithstanding anything else contained in this Charges Scheme. L. e-billing and on-line account management 1 The Company offers Customers the facility to manage their water services account on- line including e-billing amending contact details setting up a direct debit notifying a move and downloading copies of bills.

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Affinity Water Charges Scheme 2015/2016 Page 49 10. Infrastructure charges A. Definitions 1 The following capitalised italicised words have the meanings given below: Common Billing Agreement an agreement between the Company and any other person under which that person has undertaken to pay charges for water supply in respect of two or more Houses which have a common supply pipe and there is also a similar agreement for common billing between that person and the undertaker providing sewerage services. House any building or part of a building which is occupied or likely to be occupied as a private dwelling house and includes a flat. Instalment Amount the aggregate amount which would fall to be paid in any year by way of payments of interest and repayments of capital if an amount equal to the charge payable for the connection of any Premises to a water supply had been borrowed by the Company on terms: i requiring interest to be paid and capital to be repaid in 12 equal annual instalments and ii providing for the amount of interest to be calculated at such rate and in accordance with such other provision as may have been determined by the Company with the approval of the Water Services Regulation Authority Ofwat or in default of such a determination by the Water Services Regulation Authority Ofwat. Supply Pipe any part of a service pipe which the Company or other water undertaker could not be required to lay under section 46 of the WIA 1991. B. Purpose 1 The purpose of the infrastructure charge is to enable a charge to be levied to reflect broadly the expected additional load placed on the Companys network. 2 Charges sometimes known as Network Charges are also payable in respect of Premises where the use of water is for non-Domestic Purposes but are not included in

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Affinity Water Charges Scheme 2015/2016 Page 50 this Charges Scheme. Details are available from the Company on its website and on request. C. When does an infrastructure charge arise 1 An infrastructure charge is payable for the connection whether directly or indirectly of any Premises not previously connected to a supply of water provided by the Company or another water undertaker using water for Domestic Purposes to the existing network of mains. This will include cases where a site is being developed or redeveloped by means of the conversion or extension of an existing building or buildings resulting in a significant increase in demand. This charge is payable in addition to those made for providing a connection pipe and where necessary a water main. D. Liability to pay 1 Infrastructure charges are payable by the person making or requesting the connection to any Premises on whose behalf the connection or request for connection is made. The Company may also recover infrastructure charges from the owner or Occupier of the Premises at the time of connection or any time thereafter. E. Calculation of the infrastructure charge Standard Water Infrastructure Charge 1 The Standard Water Infrastructure Charge is shown in the Schedule of Charges and will apply unless the Non-Standard Infrastructure Charge applies. Non-Standard Infrastructure Charge 2 In the case of Houses subject to a Common Billing Agreement the charge for each House will be the Standard Water Infrastructure Charge multiplied by the Relevant Multiplier for that House. 3 In the case of Premises other than Houses to which water is provided by Supply Pipes above the standard size 25mm the charge for the Premises will be the Standard Water Infrastructure Charge multiplied by the Relevant Multiplier for those Premises. F. Determining the relevant multiplier 1 Charges are based on the load that the development is placing on the system. In order to assess these charges the total number of water units is expressed as loading units.

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Affinity Water Charges Scheme 2015/2016 Page 51 Water Fitting 1 Loading Units WC flushing cistern 2 Wash basin in a House 1.5 Wash basin elsewhere 3 Bath tap nominal size 3/4in/ 20mm 2 10 Bath tap nominal size larger than 3/4in/ 20mm 2 22 Shower 3 Sink tap nominal size 1/2in/ 15mm 3 Sink tap nominal size larger than 1/2in/ 15mm 5 Spray tap 0.5 Bidet 1.5 Domestic appliance subject to a minimum of 6 loading units per House 3 and 4 3 Communal or commercial appliance 3 10 Any other water fitting or outlet including a tap but excluding a urinal or water softener 3 Notes to table: 1. Reference to any fitting includes reference to any plumbing outlet dedicated space or planning or other provision for that fitting 2. Including a whirlpool or Jacuzzi 3. Domestic appliance means an appliance including a dishwasher a washing machine and waste disposal unit in a House and communal or commercial appliance means an appliance including a dishwasher a washing machine and waste disposal unit elsewhere than in a House including communal facilities 4. In calculating the Relevant Multiplier a minimum of 6 loading units in respect of each House will be included for domestic appliances whether or not the House has any such appliances except in the case of any House where neither a washing machine nor a dishwasher can be provided and there is no plumbing outlet dedicated space or planning or other provision for either appliance in the House. Calculating the Relevant Multiplier for Houses subject to a Common Billing Agreement a Calculate the aggregate loading units b Divide this number by 24 c Divide the result by the number of Houses subject to the Common Billing Agreement d The resulting number is the Relevant Multiplier.

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Affinity Water Charges Scheme 2015/2016 Page 52 Calculating the Relevant Multiplier for Premises other than Houses to which water is provided by a Supply Pipe above the standard size a Calculate the aggregate loading units b Divide this number by 24 c The resulting number is the Relevant Multiplier subject to a minimum value of one. G. Credits 1 Where a site is redeveloped or a building is converted and has a metered supply of up to 25mm a credit of one standard infrastructure charge will be given for each Premises on the site previously connected to the Companys water supply in the five years beforehand. 2 Where the site to be developed has a metered supply greater than 25mm credits will be allowed against the number of fittings previously used. In the absence of fittings data a credit of one infrastructure charge will be awarded for each Premises on the site previously connected to the Company’s water supply in the five years beforehand. H. Time for payment 1 Infrastructure charges are payable at the time when the physical connection to a water main is made except as provided below. 2 In the case of a connection to a water supply of a building or part of a building which is occupied as a dwelling house immediately before the connection is made: a Infrastructure charges are payable in full within 28 days after the physical connection has been made or b At the option of the person liable to pay the charge an amount equal to the Instalment Amount shall be paid in each of the 12 years following the making of the connection subject only to that person giving such undertakings in relation to the payment thereof as the Company shall reasonably require the first payment to be made within 28 days after the connection has been made and the remaining payments at yearly intervals thereafter. I. Disputes 1 If the person on whom the charge is levied disputes the Companys calculation of the Relevant Multiplier or the number or type of fittings on which the calculation is based he may refer the dispute for determination by OFWAT.

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Affinity Water Charges Scheme 2015/2016 Page 53 J. Sewerage infrastructure charges 1 Sewerage infrastructure charges where applicable are collected on behalf of Anglian Water or Thames Water as appropriate in our Central Region and East Region In our Southeast Region Southern Water collects applicable infrastructure charges direct.

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Affinity Water Charges Scheme 2015/2016 Page 54 Schedule of Charges The Schedule of Charges for 2015/16 is set out in the following pages of this Charges Scheme.

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Affinity Water Charges Scheme 2015/2016 Page 55 Schedule of Charges The Schedule of Charges for 2015/16 is set out in the following pages of this Charges Scheme.

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Affinity Water Charges Scheme 2015/2016 Page 56 Central Region Metered Charges Annual standing charge by meter size 2015-16 2014-15 Domestic standing charge up to 28mm £27.50 £30.24 12-15mm £30.00 £30.24 19-21mm £39.12 £30.24 25mm £41.04 £30.40 30-32mm £126.00 £124.00 38-40mm £209.04 £205.00 50mm £242.04 £237.00 65mm £294.00 £288.00 75-80mm £359.04 £352.00 100mm £423.00 £415.00 150mm+ £475.08 £466.00 Metered field supply/cattle trough non domestic £30.00 £30.24 Mid user/monthly billed standing charge 12-15mm £75.00 £60.80 Mid user/monthly billed standing charge 19-21mm £97.80 £60.80 Mid user/monthly billed standing charge 25-28mm £102.60 £60.80 Mid user/monthly billed standing charge 30mm £150.00 £124.00 Large user charge £16820.04 £16450.00 Volumetric charges 2015-16 2014-15 Domestic volume charge per cubic metre £1.0277 £1.0004 Non-domestic standard volume charge per cubic metre £1.0348 £1.0047 Mid user volume charge per cubic metre 3-5Ml £0.9541 £0.9269 Mid user volume charge per cubic metre 5-50Ml £0.9541 £0.9269 Large user volume charge per cubic metre £0.6177 £0.5979 Watersure maximum charge £173.22 £174.61 Social Tariff maximum charge £90.00 £95.00

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Affinity Water Charges Scheme 2015/2016 Page 57 Non-Metered Charges Rateable value base charges 2015-16 2014-15 Annual standing charge domestic £42.30 £41.50 - Former Colne Valley area charge per £ of Rateable Value domestic £0.5469 £0.5267 - Former Lee Valley area charge per £ of Rateable Value domestic £0.6721 £0.6472 - Former Rickmansworth area charge per £ of Rateable Value domestic £0.5333 £0.5136 - Former North Surrey area charge per £ of Rateable Value domestic £0.5618 £0.5410 Annual standing charge non-domestic £42.60 £41.80 - Former Colne Valley area charge per £ of Rateable Value non- domestic £0.5282 £0.5267 - Former Lee Valley area charge per £ of Rateable Value non-domestic £0.6585 £0.6472 - Former Rickmansworth area charge per £ of Rateable Value non- domestic £0.5140 £0.5267 - Former North Surrey area charge per £ of Rateable Value non- domestic £0.5436 £0.5410 Assessed charges 2015-16 2014-15 1 person 65 cubic metres per year £94.00 £95.00 2 people 115 cubic metres per year £146.00 £145.29 3 people169 cubic metres per year £201.00 £174.61 4 or more people 223 cubic metres per year £257.00 £174.61 Non-domestic assessed annual standing charge 12-15mm £30.00 £30.40 Volume charge per cubic metre assessed £1.0348 £1.0047 Other Non-Metered Charges 2015-16 2014-15 Sprinkler charge £75.90 £73.10 Private swimming pool £75.90 £73.10 Leisure pools 1000l Spas Hot Tubs and Baths 230l £26.70 £25.70 Ponds £75.90 £73.10 Field supplies or cattle troughs £27.50 £73.10 Hosepipe charge £75.90 £73.10 Important Notes: -- - - Charges for sewerage services are not part of this Charges Scheme the current years charges are shown for information only. -- - - Sprinkler use is required to be metered. The sprinkler charge applies to exceptional circumsances where metering is not reasonably practical. The charge covers the annual season from 1 April to 30 September

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Affinity Water Charges Scheme 2015/2016 Page 58 -- - - The private swimming pool charge applies to any pool over 10000 litres which is not metred regardless of wether it is required ot be metered or not. -- - - The Watersure charge Average Household Charge will apply or the standard metered charge if lower

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Affinity Water Charges Scheme 2015/2016 Page 59 East Region Meteted Charges Annual standing charge by meter size 2015-16 2014-15 Domestic standing charge £27.50 £27.00 Up to 15mm £30.00 £27.00 20-22mm £39.12 £30.40 25-28mm £41.04 £30.40 38-40mm £209.04 £205.00 50-54mm £242.04 £237.00 75-80mm £359.04 £352.00 100mm £423.00 £415.00 Watersure maximum charge £179.70 £172.30 Social tariff maximum charge £90.00 £95.00 Volumetric charges 2015-16 2014-15 Volume charge per cubic metre domestic £1.6986 £1.6817 Volume charge per cubic metre non-domestic up to 3Ml £1.7410 £1.6946 Volume charge per cubic metre non-domestic up to 3-5Ml £1.7387 £1.6946 Mid and Large User tariffs 2015-16 2014-15 Standing charge up to 15mm £75.00 £27.00 Standing charge 20mm £97.80 £30.40 Standing charge up to 25mm £102.60 £30.40 Large user charge 25-50Ml £8765.04 £10061.25 Large user charge 50-100Ml £16720.08 £20326.25 Large user charge over 100Ml £30450.12 £30353.75 2015-16 2014-15 Peak Off- Peak Peak Off- Peak Volume charge per cubic metre 5-25Ml £1.5232 £1.5232 £2.1181 £1.4404 Volume charge per cubic metre 25-50Ml £1.1726 £1.1726 £1.5886 £1.0803 Volume charge per cubic metre 50-100Ml £1.0135 £1.0135 £1.3185 £0.8966 Volume charge per cubic metre over 100Ml £0.8762 £0.8762 £1.1865 £0.8069

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Affinity Water Charges Scheme 2015/2016 Page 60 Non-Metered Charges Rateable value base charges 2015-16 2014-15 Annual standing charge £42.30 £41.50 - Charge per £ of Rateable Value £1.0682 £1.0843 Assessed charges 1 person 42 cubic metres per year £99.00 £95.00 2 or more people 78 cubic metres per year £160.00 £159.85 3 people115 cubic metres per year £223.00 £159.85 4 or more people 169 cubic metres per year £315.00 £159.85 Other Non-Metered Charges Sprinkler charge £45.60 £46.80 Private swimming pool £45.60 £46.80 Leisure pools 1000l Spas Hot Tubs and Baths 230l £45.60 £46.80 Ponds £45.60 £46.80 Hosepipe charge £45.60 £46.80 Important Notes: -- - - Charges for sewerage services are not part of this Charges Scheme the current years charges are shown for information only. -- - - The WaterSure charge Average Household Charge will apply or the standard metered charge if lower

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Affinity Water Charges Scheme 2015/2016 Page 61 Southeast Region Metered Charges Annual standing charge by meter size 2015-16 2014-15 Domestic £27.50 £30.24 Non-domestic up to 15mm £30.00 £30.40 Non-domestic up to 20-22mm £39.12 £30.40 Non-domestic up to 25-28mm £41.04 £30.40 Non-domestic up to 30-32mm £126.00 £124.00 Non-domestic up to 38-40mm £209.04 £205.00 Non-domestic 50mm £242.04 £237.00 Non-domestic 75-80mm £359.04 £352.00 Non-domestic 100mm £423.00 £415.00 Field supply / Cattle Trough £30.00 £30.40 Mid-User non-domestic up to 15mm £75.00 £30.40 Mid-User non-domestic up to 20mm £97.80 £30.40 Mid-User non-domestic 25mm £102.60 £30.40 Volumetric charges 2015-16 2014-15 Volume charge per cubic metre domestic £1.8210 £1.7754 Volume charge per cubic metre non-domestic up to 3Ml/year £1.8465 £1.7977 Volume charge per cubic metre non domestic 3 - 50Ml/year £1.7089 £1.7977 Large user charge per cubic metre £1.2716 £1.2377 Watersure maximum charge £222.58 £205.25 Social tariff maximum charge £90.00 £144.00 Non-Metered Charges Rateable value base charges 2015-16 2014-15 Annual standing charge non-domestic £42.60 £74.70 Charge per £ of Rateable Value non domestic £1.7169 £1.6539 Assessed charges 1 person 65 cubic metres per year £146.00 £144.00 2 people 115 cubic metres per year £237.00 £234.41 3 people 169 cubic metres per year £335.00 £330.28 4 or more people 223 cubic metres per year £434.00 £426.15

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Affinity Water Charges Scheme 2015/2016 Page 62 Non-domestic assessed annual standing charge £30.00 £30.40 Volume charge per cubic metre assessed £1.8465 £1.7977 Other Non-Metered Charges Sprinkler charge £75.90 £94.40 Private swimming pool £75.90 £94.40 Leisure pools 1000l Spas Hot Tubs and Baths 230l £75.90 £94.40 Ponds £75.90 £94.40 Hosepipe charge £75.90 £94.40 Important Notes: -- - - Charges for sewerage services are not part of this Charges Scheme the current years charges are shown for information only. -- - - The WaterSure charge Average Household Charge will apply or the standard metered charge if lower

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Affinity Water Charges Scheme 2015/2016 Page 63 Sewerage Charges – for information only Thames Water Area Measured annual standing charge by meter size 2015-16 2014-15 Domestic £68.15 £58.12 Up to 15mm £35.00 £58.12 20mm £99.00 £131.00 25mm £177.00 £232.00 30mm £276.00 £356.00 40mm £397.00 £477.00 50mm £705.00 £785.00 65mm £1103.00 £1183.00 80mm £1587.00 £1667.00 100mm £2822.00 £2902.00 125mm £4409.00 £4489.00 150mm £6349.00 £6429.00 200mm £11287.00 £11367.00 250mm £17635.00 £17715.00 Large user charge £15886.00 £15862.00 Non-household consumption based fixed charge Non-household consumption based fixed charge 0-500m3 £26.98 - Non-household consumption based fixed charge 500-1000m3 £34.00 - Non-household consumption based fixed charge 1000-5000m3 £128.40 - Non-household consumption based fixed charge 5000 - 20000m3 £297.24 - Non-household consumption based fixed charge 20000-50000m3 £729.97 - Non-household consumption based fixed charge 50000m3-100000m3 £2053.69 - Non-household consumption based fixed charge 100000 - 250000m3 £2053.69 - Non-household consumption based fixed charge 250000m3+ £11448.68 - Volumetric charges Volume charge per cubic metre household £0.7943 £0.7482 Volume charge per cubic metre non-household 0-500m3 £0.8701 £0.7482 Volume charge per cubic metre non-household 500-1000m3 £0.8787 £0.7482 Volume charge per cubic metre non-household 1000-100000m3 £0.8007 £0.7482 Large user volume charge per cubic metre £0.6419 £0.5986 Watersure Maximum charge £171.00 £158.00 Social Tariff - All charges are 50 of the standard tariff

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Affinity Water Charges Scheme 2015/2016 Page 64 Non-metered Charges Rateable value base charges 2015-16 2014-15 Annual standing charge including surface water drainage £53.25 £48.12 Annual standing charge excluding surface water drainage £28.25 £23.12 Surface water only connection £44.00 £58.12 North London area charge per £ of Rateable Value £0.4891 £0.4337 Eastern area charge per £ of Rateable Value £0.5233 £0.4640 Northern area charge per £ of Rateable Value £0.5423 £0.4808 Southern area charge per £ of Rateable Value £0.6411 £0.5684 Western area charge per £ of Rateable Value £0.7456 £0.6611 Assessed charges Single occupier £110.60 £110.00 Studio/1bedroom £132.08 £130.00 2 bedrooms £139.17 £136.00 3 bedrooms £152.37 £148.00 4 bedrooms £162.89 £158.00 5 bedrooms plus £176.92 £171.00 Non-domestic volume charge per assessed cubic metre 0 - 500m3 £0.8375 £0.7482 Non-domestic volume charge per assessed cubic metre 500-1000m3 £0.8452 £0.7482 Non-domestic volume charge per assessed cubic metre over 1000m3 £0.8007 £0.7482 Anglian Water Area Measured annual standing charge 2015-16 2014-15 Domestic £86.00 £87.00 Domestic SoLow £21.61 £0.00 Streamline Green £132.00 £144.00 Streamline Orange £169.00 £189.00 Streamline Blue £453.00 £478.00 Profile Plus £5673.00 £5298.00 Volumetric charges Domestic £1.5775 £1.7032 Domestic SoLow £2.5314 £2.9921 Streamline Green £1.4954 £1.5951 Streamline Orange £1.4138 £1.4947

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Affinity Water Charges Scheme 2015/2016 Page 65 Streamline Blue £1.3507 £1.4304 Profile Plus £1.2347 £1.3233 Watersure Maximum Charge £225.00 £239.00 Aquacare Plus Annual standing charge £150.00 £152.00 Aquacare Plus charge per cubic metre £0.6294 £0.7402 Non-metered Charges Rateable value base charges 2015-16 2014-15 Annual standing charge for properties with RV £1001 £259.50 £271.08 Annual standing charge RV £1001-£5000 £519.00 £542.16 Annual standing charge RV £5001-£50000 £1297.50 £1355.40 Annual standing charge RV £50000 £1297.50 £5421.60 Annual standing charge for properties with zero or no RV £259.50 £280.00 Surface water only drainage charge £73.50 £68.00 Charge per £ of rateable value £0.1425 £0.1717

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Affinity Water Charges Scheme 2015/2016 Page 66 Other Charges Charges payable for certain purposes other than the supply of water excl. VAT excl. VAT 2015-16 2014-15 Infrastructure Charge £351.00 £345.00 Emergency call out outside normal working hours £64.00 £63.00 Reconnection of supply following temporary disconnection at customers request £42.00 £41.00 Empty premises confirmation fee £38.55 £38.55 Debt collection agency charge where customer details passed to agency £50.00 £50.00 Non-domestic debt collection visit to site incl. turning on/off supplies for non-payment £42.00 £41.00 Service of Customer Service Technician during normal working hours per hour £42.00 £41.00 Cheque returned or direct debit rejected by bank per rejection £11.00 £11.00 Provision of water quality data for a zone other than the one in which the customer lives £13.00 £13.00 Refund cheque - administration fee for verification of presentation at customers bank £30.00 £30.00 System generated electronic copy bills backdated max. 2 yrs 1 yr for monthly billed accounts Nil Nil Hard copy reprint and postage of individual system generated bills £6.00 £6.00 All other accounts or statements £12.00 £12.00 Provision of non self service large format plans per plan £57.00 £57.00 Meter Tests per test - domestic premises £70.00 £70.00 Meter Tests per test - non-domestic premises POA POA Domestic meter logging incl. analysis of logger data an report produced for customer £214.00 £210.00 Non-domestic customers short term logging POA POA Non-domestic customers leakage detection service POA POA Domestic / non-domestic flow and pressure test per test per unit £96.00 £94.00 Industrial flow and pressure test per test per unit £128.00 £126.00 Meter Installation Charges excl. VAT excl. VAT Re-site at customers request. External no existing boundary box £229.00 £225.00 Re-site at customers request into existing boundary box £92.00 £90.00 Re-site at customers request internal location incl AMR £198.00 £194.00 Remove meter on reversion at customer request £151.00 £148.00 Upgrade meter to AMR enabled at customer request £198.00 £194.00

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Affinity Water Charges Scheme 2015/2016 Page 67 Non-domestic - supply and fit meter in existing boundary box £92.00 £90.00 Non-domestic - all other fits incl excavations and internal fits £229.00 £225.00 Stop tap re-site within 3 weeks moving an existing stop tap from its current location at customers request £291.00 £285.00 CST out of hours visit - for emergency visits out of hours that prove to be non-emergencies £64.00 £63.00 Building Water Non-Metered excl. VAT excl. VAT Per flat £27.10 £26.38 Per house £53.12 £51.71 Per small non-domestic premises £78.50 £78.50 Per large non-domestic premises £174.70 £169.70 Developer Services Charges excl. VAT excl. VAT Provision of a quotation to support a Section 41 Application £495.35 £485.73 provision of a quotation to support a Section 45 Application £201.48 £197.57 Fire Hydrant Charges price include reinstatement to any surface excl. VAT excl. VAT 2015-16 2014-15 Install new hydrant to existing main excl. post and plating £643.00 £630.00 Install new hydrant to run of new main excl. post and plating £541.00 £530.00 Re-site hydrant position from carriageway to footpath POA POA Install new hydrant in terminal wash out position on run of new main excl post and plate £311.00 £305.00 Raise hydrant and replace with new £600.00 £500.00 Replace defective hydrant hydrant only excl post and plating £520.00 £510.00 Replace defective hydrant and fittings old LCC type excl post and plating £600.00 £580.00 Repack hydrant iincluding ease spindle £360.00 £350.00 Re-washer hydrant £400.00 £375.00 Reconstruct hydrant pit/chamber £300.00 £300.00 Replace with new hydrant frame and cover £225.00 £220.00 Raise exisiting hydrant frame and cover £400.00 £260.00 Lower exisiting hydrant frame and cover £400.00 £260.00 Reset exisiting hydrant frame and cover £200.00 £150.00 Supply and fit hydrant post and plate £160.00 £120.00 Abandon hydrant £680.00 £680.00 Terminal hydrant maintenance is charge as a of the appropriate 50 50

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Affinity Water Charges Scheme 2015/2016 Page 68 hydrant maintenance charge Customer Use of Hydrant / Standpipe Charges excl. VAT excl. VAT 19mm standpipe rent per week £30.50 £30.50 19mm standpipe rent per month £84.25 £84.25 63mm standpipe rent per week £37.50 £37.50 63mm standpipe rent per month £104.75 £104.75 Standpipe / hydrant use set up and instruction charge drawing from a single hydrant £72.00 £69.75 Refundable deposit 19mm standpipe £161.00 £161.00 Refundable deposit 63mm standpipe £338.00 £333.00 Water charges - up to 1 cubic metre per day not applicable to customers using 63mm standpipe single hydrant £190.56 £182.16 1 - 10 cubic metres per day £949.92 £907.56 10-20 cubic metres per day £1898.88 £1815.12 Over 20 cubic metres per day assessed consumption per cubic metre £1.0611 £1.0482 Pro-rata for shorter periods minimum charge £31.50 £30.13 Standpipe / hydrant use set up and instruction charge drawing from multiple hydrants £72.00 £69.75 Water charges - up to 1 cubic metre per day not applicable to customers using 63mm standpipe multiple hydrants £265.80 £253.92 1 - 10 cubic metres per day £1326.84 £1267.68 10-20 cubic metres per day £2663.04 £2544.12 Over 20 cubic metres per day by agreement POA POA Daily usage up to 20m3 - First Day £103.50 £99.88 Daily usage up to 20m3 - Subsequent days £31.50 £30.13 Purchase of 19mm standpipe without valve key £73.00 £73.00 Purchase of 63mm standpipe without valve key £250.00 £245.00 Purchase of valve key and bar only £88.00 £88.00 Important Notes: -- - - The starting category for Customers wishing to use a 63mm standpipe is 1 to 10 cubic metres/day -- - - Customers are obliged to obtain a hydrant licence before drawing water from our network. Where customers are found to have taken water without a licence in place the Daily Usage charges will be applied

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Affinity Water Charges Scheme 2015/2016 Page 69