As the UK forges ahead towards a more sustainable, low-carbon future, the Independent Networks Association (INA) is asking the new Government to take decisive action in the upcoming October Budget. Representing the UK’s leading independent utility network owners and operators, the INA is uniquely placed to provide insights on how the government can unlock growth through infrastructure investment and regulatory reform.
Independent networks provide critical utility connections, including energy, water, and wastewater, to over four million households and thousands of businesses across the UK. Our members are committed to delivering fast, efficient, and cost-effective growth projects that will serve the UK for decades. With the government’s ambitious target of building 1.5 million new homes, our members believes that independent networks are crucial to achieving this goal and supporting broader decarbonisation efforts.
In our submission to the Treasury, we have outlined three key recommendations that we believe will help kickstart economic growth while driving forward the UK’s green agenda.
Increase the Efficiency of Water Regulation with a National NAV Licence
Independent networks deliver around 20% of all new water connections in the UK, connecting over 75,000 homes. These networks provide water connections 20-25% faster than incumbent utility companies while also adopting the networks and ensuring best practices in areas like leakage, water metering, and sustainable drainage.
However, the current process for obtaining New Appointments and Variations (NAV) licences is cumbersome and inefficient.
At present, independent networks must apply for NAV licences site-by-site, requiring approval from up to four different regulators. This process is time-consuming and redundant, with much of the same information being submitted repeatedly. The INA estimates that in 2023 alone, regulators spent over 36,000 days processing NAV applications. Streamlining this process by introducing a national NAV licence would free up time and resources for regulators, allowing them to focus on more environmentally sensitive sites and poorly performing operators.
A national NAV licence would enable independent networks to be assessed upfront, with a single licence allowing them to operate and compete across England and Wales. This would vastly improve the speed and efficiency of new water connections, helping to support the government’s target of building 1.5 million new homes. Importantly, the government consulted on this reform earlier this year, meaning it could be implemented without further delay.
Empower Local Authorities to Lead on Local Decarbonisation
Many local authorities across the UK have declared climate emergencies and set ambitious decarbonisation targets. However, a lack of structured support and effective local area energy planning (LAEP) has hindered their ability to realise these goals. Each local area has unique characteristics—population size, housing stock, and existing energy infrastructure—which require bespoke energy strategies. By empowering local authorities to take the lead on local decarbonisation, we can unlock growth, reduce carbon emissions, and create green jobs.
There are some great examples where LAEPs have been created and work is underway to create a toolkit approach. The missing factor is how this can be standardised and embedded, creating the capabilities for Local Authorities to do this across Britain. The INA is asking Ministers to provide clear guidance and funding to support Local Area Energy Planning (LAEP) across the country. A standardised framework and capability development that can be adapted to their needs will provide the consistency of inputs from Local Authorities to enable all of them to drive the investment needed to decarbonise and provide growth for their communities.
Independent networks are already playing a crucial role in supporting decarbonisation by connecting 80% of new homes and delivering essential infrastructure for projects like rapid EV charging stations. By involving local authorities in structured energy planning, we can ensure that decarbonisation efforts align with local growth ambitions and that the transition to green energy supports regional economies.
Create a Successor to the Rapid Charging Fund Pilot
The original Rapid Charging Fund (RCF) pilot provided funding for grid connections to ultra-rapid EV charge points at motorway service stations, helping to build a strategic charging infrastructure backbone across England. As electric vehicle adoption continues to soar, with hundreds of thousands of new EVs expected on UK roads in the coming years, the need for more ultra-rapid charging points is becoming increasingly urgent.
While the RCF pilot was successful, its scope was limited to areas where it was not economically viable to provide a connection. The INA is now calling for the government to create a successor pilot to the RCF, expanding its reach and addressing connection cost barriers that prevent ultra-rapid charge points from being installed in economically challenging areas. This will be critical to supporting the decarbonisation of the transport sector and ensuring that EV owners have access to fast, reliable charging options, particularly in regions where current infrastructure is lacking.
Independent networks have already been at the forefront of connecting rapid charging stations, and a successor to the RCF would allow for even greater progress. By supporting this initiative, the government can help ensure that the UK’s EV charging infrastructure keeps pace with growing demand and continues to support sustainable transport options across the country.
Conclusion
The INA’s recommendations for the 2024 October Budget are designed to drive sustainable economic growth while addressing some of the most pressing challenges in the UK’s utility infrastructure. By streamlining water regulation through a national NAV licence, empowering local authorities to lead on decarbonisation, and creating a successor to the Rapid Charging Fund pilot, the government can unlock the potential of independent networks to deliver fast, efficient, and cost-effective projects that support the UK’s green transition.
The INA and our members are ready to work with government officials to turn these recommendations into action, ensuring that the UK continues to build a resilient, low-carbon future that benefits businesses, households, and communities alike.
Nicola Pitts, Executive Director, Independent Networks Association
