Abstraction charges to rise?
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WATER ABSTRACTION charges look set to increase significantly if, as proposed, compensation for abstractors who have their rights revoked or reduced under new legislation is funded by the charging system.
The issue threatens to become a major bone of contention between abstractors and the Environment Agency when it consults on the matter this spring.
Last week (w/e Feb 25), growers slammed the proposal, which would see those who are allowed to continue abstracting because they are not damaging the environment, being asked to foot what could be a £500m bill to recompense those who are stopped.
“Why should a public environmental good be paid for by private abstractors?” Norfolk grower, Tim Jolly asked at the UK Irrigation Association conference in Peterborough.
“The people who have not caused the problem, and who will not benefit, are being asked to pay. The situation is confused.”
The charging system currently raises £110m a year, DEFRA‘s head of water resources policy, Mike Walker, said.
If existing abstractors are made to pay for the compensation, then charges could have to be ratcheted up five fold.
But the increases might not be immediate and could be softened by being “mortgaged” over several years, possibly to 2029, he added.
*A full report on the UKIA conference appears in Crops Mar 12.