NI Water consults on changes to sewer bonds for new developments

Northern Ireland Water (NIW) has launched a public consultation on a proposed Article 161 Sewer Bond Incentivisation Policy, which would introduce a risk-based approach to the financial bonds developers must provide before sewer infrastructure is adopted by NIW.

The proposals are intended to reduce the number of housing developments with long-term unadopted sewers, provide greater protection for homeowners and encourage the timely completion and adoption of sewer infrastructure.

Proposal 1: Risk-based bond incentivisation

NIW proposes replacing the current standard approach with a three-tier bond system based on a developer’s compliance history and risk profile.

Under the proposals:

• Tier 1 (Low Risk) developers with a strong track record of compliance and timely sewer adoption would benefit from a reduced bond requirement of 25% of construction costs.
• Tier 2 (Standard Risk) would remain at the current 40% bond level and would apply to new or unproven developers.
• Tier 3 (High Risk) developers with a history of enforcement action, significant non-compliance or developer defaults would be required to provide a 70% bond.

Developers would be able to move between tiers over time based on their ongoing performance.

When the policy is introduced, all developers would initially be placed in Tier 2 unless there is sufficient evidence to support classification within another tier.

Proposal 2: Stronger developer assessment

The consultation proposes a more comprehensive assessment of developers when determining bond requirements.

In addition to considering a developer’s Article 161 compliance history, NIW would take account of enforcement action, outstanding unadopted developments and the compliance history of company directors, including previous companies, parent companies and subsidiaries.

Developers with relevant enforcement history or criminal convictions within the previous ten years would automatically be classified as Tier 3.

Proposal 3: Enhanced surety and governance arrangements

The consultation also proposes stricter approval criteria for bond providers, including minimum financial strength requirements, regulatory oversight, and enhanced due diligence for bonds exceeding £500,000.

In addition, NIW proposes establishing a Developer Performance Register to monitor compliance and determine developers’ bond tiers.

Have your say

The consultation closes on Tuesday 20 October 2026.

The full consultation document can be accessed here.

RSUA is preparing a response to this consultation. If you would like to share your views, please contact Curtis Large, RSUA Policy and Public Affairs  Officer, at curtis@rsua.org.uk