Helping high-rise developers unlock Ofwat’s new environmental incentives

Ofwat introduced the new Environmental Incentives Common Framework (EICF) to support more sustainable, water-efficient housing across England. For high-rise developers, this presents both an opportunity and a challenge. While the incentives are a welcome step towards lowering the environmental impact of new developments, understanding and applying them correctly can be complex.

Neil Fitzsimons, Managing Director of Power On says: “These changes could make a significant difference to developers where, for example, a 400-plot development meeting Thames Water’s tier 1 criteria, could receive a £160,000 rebate.”

Understanding the EICF

The new framework requires water companies to offer financial incentives to developers who
exceed baseline environmental performance, particularly in water efficiency and surface
water management.

Key focus areas include:

· Reduced per capita water consumption

· Incorporation of sustainable drainage systems (SuDS)

· Demonstrable environmental performance above statutory minimums

Why This Matters to High-Rise Developers

In dense, vertical builds, space is at a premium, and infrastructure design must balance performance, compliance, and efficiency. With tight timelines and cost pressures, developers might overlook the financial and regulatory benefits these incentives can bring.

Incentives can support:

• · Lower operational costs through water-saving tech

  · Improved ESG ratings, crucial for institutional investors

  · Regulatory alignment with the Future Homes Standard and wider Net Zero goals

  · Positive public perception as sustainability expectations rise

Bridging the Knowledge Gap

As a specialist is multi-utility infrastructure in complex urban and high-rise developments, Power On is helping developers to navigate this changing landscape. Power On has teams to provide upfront planning support and guide developers during the earliest design phases to incorporate water-saving infrastructure and SuDS features, essential for qualifying for Ofwat’s new incentives.

By embedding water efficiency and sustainable drainage into a broader utility plan (including electric, fibre, and low-carbon heating), Power On can help create developments that are future-ready and financially optimised.

The company is providing workshops, briefing sessions, and one-to-one consultations with developer teams to demystify the EICF and ensure it’s built into decision-making—not tacked on as an afterthought.

Through its industry engagement, Power On can provide regulatory liaison, coordinating with local water companies on behalf of developers, ensuring their incentive applications are properly aligned and submitted.

A Smarter Approach to Sustainable Growth

The EICF reflects a growing expectation that all new developments, especially large-scale, high-density projects, pull their weight in tackling environmental pressures. With the right support, these incentives are not just achievable, but valuable. Power On is committed to helping developers design smarter, build greener, and gain more from every connection.