The Environment Agency (EA) has launched a new consultation on proposed changes to the way licence holders are charged to abstract water from the environment.

Launching the consultation, the EA said:

“ We are embarking on a step-change which will result in all current and new abstractors, as well as the environment benefiting from a strategic approach to managing water.”

England is facing increased pressure on its water resources due to population growth and climate change – the country uses 15,000 million litres of water a day. Based on recent projections, more than 3.4 billion additional litres per day will be needed in England by 2050, Without action, parts of the country are at risk of significant water shortages.

All businesses are required to have an abstraction licence to take more than 20 cubic metres a day from a river, stream, canal or groundwater. The Environment Agency said that reviewing and updating the way organisations are charged for the licences will help manage and protect water resources.

The new proposed charges – which have not changed for the past 10 years apart from one change to the application fee– will be based on:

• the volume of water taken from the environment;
• where the water is taken from; and
• how much of that water is returned to the environment

Under the proposals, around 45% of abstractors will see their annual charges decrease and 55% will see an increase. Overall, three quarters (75%) of all abstractors will see either a decrease or an increase of less than £100 in their charges.

New applicants will also see a higher initial application fee, in line with those charged for other permitting regimes.

The changes will benefit the environment by enabling the Environment Agency to invest more in upgrading infrastructure assets to move water around the country, using data to improve local management of water resources and protecting water-stressed catchments such as chalk streams.

All those who abstract water from the environment – including water companies, farmers, local authorities and other organisations – are encouraged to take part before the consultation closes on 10 November. Those affected will also receive a letter from the Environment Agency this week.

Environment Agency Chief Executive Sir James Bevan said:

“In the face of the climate emergency, population growth and rising demand for water, we need to protect our rivers, aquifers and the environment; and ensure that those who rely on water for their business or public supply can continue to do so into the future.

“The proposed changes to the Environment Agency’s water abstraction licence charges are designed to do that. They will allow the EA to do more to protect our rivers and chalk streams; to manage our water resources better for the public, businesses and the environment; and to sustain supplies into the future, helping us secure long term water resilience.

“I urge anyone with an interest to take part in this consultation on this critical issue for us all.”

In 2017 the Environment Agency and Defra published a joint Water Abstraction Plan setting out the planned reforms for water abstraction management over the coming years. It set out how plans will reach sustainable levels of abstraction, develop a stronger catchment focus and modernise the abstraction service.

The consultation is made up of:

• the consultation document which sets the scene and lays out the proposals for a new charging scheme
• the draft Economic Impact Assessment
• the ‘Draft of the Environment Agency (Environmental Permitting and Abstraction Licensing) (England) Charging Scheme 2022’
• the draft Water resources charging guidance which explains the proposals in more detail. A final version will be published online once a revised charging scheme is implemented
• a presentation which explains the current abstraction charges scheme, the proposed new approach and sector specific worked examples of how to calculate the charge
• maps – to help abstractors identify if the additional cost factors apply to their abstraction (water availability, supported sources and specialised groundwater model areas)
• a charge indicator tool – to help identify the abstraction charge under the new proposals

The Government will consult later this year on plans to streamline the overall environmental regulatory framework for abstraction licensing in England to create a modernised, flexible system for all.

The Environment Agency consultation will run for 12 weeks until 10 November. The new charging scheme will then be implemented from 1 April 2022.

Click here to access the consultation paper

Click here to access the consultation online