Economics
Following the Water Environment and Water Services Act
(Scotland) SEPA is required by Article 5 of the WFD to
carry out an initial economic analysis of water uses by
December 2004.
This analysis will provide information on:
- The economic importance of water uses,
- Trends in water demand, water supply, investments
in the water sector,
- The identification of gaps in the analysis, and
- Assessing the recovery of the costs of water
services.
The economic analysis of water uses will pave the way
for follow-up work aimed at identifying the most
cost-effective programme of measures for achieving the
environmental objectives of the Directive. It will also
assist in justifying derogations (e.g. achieving
environmental objectives within a longer time frame, or
proposing less stringent objectives because of
disproportionate costs) and support the process of
designating heavily modified water-bodies.
A study was conducted by consultants for SEPA to
scope out and assess the requirements of the analysis of
water uses. Details on the Economic aspect of the new
regime can be viewed on the
SEPA
website.