SHIFTING WATERS

Growers who abstract water could see significant increases in some costs under a long-awaited review of the charging regime by the Environment Agency (EA).

NFU water resources specialist Paul Hammett warned that there would be winners and losers if proposals currently out for consultation are implemented in 2022.

He encouraged members to keep on top of what any changes will mean for them as the plans progress.

He added: “It looks as if annual abstraction charges could be reduced for many, while application charges for new, varied or renewed licences could increase, and sometimes substantially.

“The world we are moving into is that abstraction licences and permits will be more regularly reviewed and changed, so we need to focus on what farmers will have to pay, not only to apply for a new licence, but also to review and renew what they have already got.”

The EA says the UK is looking at a 23% increase in water demand by 2050 and that significant investment is needed to avoid shortages in some areas.

It says current abstraction charges have not changed for 10 years and no longer cover the complexity of the work it has to do in a changing climate.

The EA has written to all abstractors about the proposals and a ledger of future annual charges is available, as well as an online calculator.

The EA is proposing significant increases on new applications charges, and for variations of existing licences, from the low current flat rate of £135.

New ‘time and materials’ costs would apply for applications that require work like external consultations or assessments, environmental monitoring, where applications are amended during determination, or those that compete for the same water, although discounts could apply where one applicant

The abstraction review comes alongside a second consultation on moving abstraction and impounding licensing into the Environmental Permitting (England and Wales) Regulations (EPR). Defra is looking at this with a view to implementing the transition to the EPR in England in 2023.

The change from licences to permits will be significant, because permits are subject to ‘periodic review’.

“The NFU remains concerned that the site-specific characteristics and use of abstracted water by farmers and growers makes it a poor fit for absorption into EPR,” said Mr Hammett. “EPR is a technically and legally complex framework and the NFU will be seeking Defra assurances that a common sense and pragmatic approach will be applied.” applies for a range of activities.

Time limited licences would come under the new, costlier regime if there are significant changes at renewal, but renewal on the same terms will be charged at a fixed rate.

For licence variations, the EA says simple administrative changes will not incur fees, but it plans to levy 50% of a new application charge for minor and normal variations, and 90% for ‘substantial changes’.

The picture looks better on annual abstraction charges, where Mr Hammett welcomed proposals to retain the two-part tariff mechanism for irrigation, which recognises erratic use depending on rainfall, and a discount, albeit at 50% compared to the current 90%, for winter abstraction to help fill farm reservoirs.

Examples in the consultation document suggest that a spray irrigator using 99 megalitres a year would see their annual charge fall from £2,181 to £1,783 using the new formula.

Overall, the EA thinks that around 48% of farm abstractors will see their annual charges increase, while 52% will see them decrease. Charges will also consider the ‘purpose of abstraction’, with tiers to account for water not returned to the environment.

The driving factor for increases is again likely to be any extra work required from the EA, particularly where catchments have restricted available water, or where the EA incurs costs for assets that augment resources. P