12/09/2005 - The Environment
Agency published (on Friday) proposals to
increase the cost of licences to abstract
water from rivers and groundwater in England
and Wales. The increase would create a fund
to enable the Agency to revoke historical
rights to water which need to be revoked or
limited to prevent damage to the environment
and compensate abstractors whose rights are
revoked. It will also meet the costs of new
responsibilities assumed by the Environment
Agency under the Water Act 2003.
Environment Agency Head of Water Resources
Ian Barker said:
"In some places, water abstraction is
damaging the environment, including natural
habitats which are of international conservation
importance. The only way to prevent or reverse
damage, and sustain these valuable river and
wetland sites for the future, will be to stop
or limit damaging water abstraction."
Many areas of rivers and wetlands will receive
increased and further protection with the
new proposals in place. This in turn will
lead to a wide range of environmental benefits
including improved habitats for fish, including
salmon, lamprey and antive crayfish and for
wetland birds including bitterns, ducks and
waders.
Around 27,000 abstraction licences are currently
in force in England and Wales, ranging from
large volume abstraction public water supply
companies to licences for small agricultural
holdings. Charges are based on a number of
factors including the volume of water removed,
the purpose of the abstraction and the seasonal
timing of removal. Licence fees fund the work
of the Environment Agency in managing the
delicate balance between protecting the environment
and making water available for public supply,
industrial, farming and other important needs.
Important legislation including the EU Habitats
Directive defines our obligations for protecting
natural habitats and wildlife species in law.
Initially, the Agency is proposing an increase
in licence fees of between 8 and 10 % per
year over the next four to five years. A premium
is also proposed to be applied to abstraction
licences which are currently open-ended (since
2001 the Environment Agency has granted all
new water abstraction licences for limited
periods only with the requirement to re-apply
and this became a legal requirement under
the Water Act 2003, but historically many
licences were granted in perpetuity). The
Agency believes the higher cost should act
as an incentive to these abstractors to agree
time limits in line with modern licensing
practice.
The increase would be implemented from 1
April 2006, co-inciding with the introduction
of changes resulting from the Water Act 2003,
which will require some previously exempt
types of abstraction, including trickle irrigation,
de-watering of mines and abstraction relating
to managing navigation, to be licensed. The
Environment Agency will also assume responsibility
for advertising abstraction licence applications
and the proposed fee increase will be used
to recover these costs.
Together, the impact of the fee increase
and new licence payers would raise an additional
£85m over the period to fund compensation
for revoking or changing the most damaging
water abstraction licences.
Ian Barker continued:
"We believe it is fair that those who
benefit from access to water from the environment
also share the cost of sustaining the resources
they rely on for the future. The true cost
of abstraction must reflect the cost of protection
of the natural environment.
The first consultation was carried out in
January 2004 and the final consultation on
the proposed changes will run until 2 December
2005. Anyone wishing to find out more about
the proposed changes can download the consultation
from the environment agency website.
NOTES TO EDITORS:
The cost of managing the water abstraction
licensing system and managing water resources
as a whole is recovered through the Environment
Agency’s Abstraction Charges Scheme. Annual
charges are payable for most licences.
The Environment Agency is reviewing the way
it charges for abstractions to recover the
costs of making environmental improvements
required by the Habitats Directive and the
Government’s Public Service agreement on SSSIs
and to support changes to the licensing system
introduced by the Water Act 2003.
The Water Act 2003 and the Explanatory Notes
are priced documents, which are published
by the Stationery Office (www.tso.co.uk/bookshop).
An electronic copy of the Act can be viewed
by selecting the link at the end of this release.
The Habitats Directive is a major European
initiative that aims to contribute towards
protecting biodiversity - the variety of life
- through the conservation of natural habitats
and wild plants and animals. Recognising that
wildlife habitats are under pressure from
increasing demands made on the environment,
the Directive provides for the creation of
a network of protected areas across the European
Union to be known as ‘Natura 2000’ sites.
The first consultation was carried out in
January 2004 and the final consultation on
the proposed changes will run until 2 December
2005.
The consultation can be downloaded from the
Environment Agency website.
Consultation responses to can be sent electronically
to alr@environment-agency.gov.uk
