The unmeasured domestic water and sewerage charges to be introduced in Northern Ireland from 1 April 2007 will be made up of a standing charge and a variable element calculated on the basis of the property capital value as follows:
Water Charge=(Water Standing Charge)+(Water capital value Rate)x(Property Capital Value)
Sewerage Charge=(Sewerage Standing Charge)+(Sewerage capital value Rate)x(Property Capital Value)
The water capital value rate and the sewerage capital value rate will each be a single set rate for all unmeasured domestic customers in Northern Ireland. The level of the variable element of the charges will depend only on the property capital value. Setting a single rate for unmeasured charges irrespective of location is similar to setting volumetric charges for water and sewerage which do not vary according to the location of the property.