Water Framework Directive National Stakeholder
Forum
27/28 April 2004
Proposed charging scheme
Martin Marsden, Water Policy Unit Manager,
SEPA
1. General introduction:
SEPA is facing a major change to the scope of its
functions. It will be moving from being a pollution control
authority covering point sources discharges to have
responsibilities for covering abstractions, impoundments,
engineering and diffusion pollution control. In addition,
SEPA will be responsible for the delivery of River Basin
Management planning. These additional duties will affect
all aspects of SEPA from Regulation and Environmental
Monitoring to Public Affairs. From SEPA's perspective it is
important that it is funded so that it can service these
new responsibilities quickly and efficiently. However,
such a step change in funding requirements raises major
concerns from those organisations who face increased
charges. This is a matter of especial concern for those
organisation who have not contributed, via SEPA's charging
scheme, to the provision of an environmental protection
service for Scotland.
2. Development of charging
scheme
SEPA is determined to develop the new charging scheme in
a transparent manner. As announced at the last Executive
Stakeholders Forum, SEPA convened its first Regulatory
Stakeholder Forum on 29 March 2004. This meeting was
focused on the implications of the charging scheme.
At this meeting SEPA described its current estimates of
the costs of introducing the new regimes. SEPA currently
spends £25m on the Water Environment of which £11m is
raised by charges under the Groundwater Regulations and the
Control of Pollution Act charging schemes. SEPA currently
considers that an additional £15m will be required to be
raised by charging by 2007/8 to deliver the WEWS
Requirements. Estimates up to 2009/10 are currently being
calculated.
The meeting expressed concern over the size of the
resource demand and asked SEPA to identify the benefits
which SEPA this expenditure would deliver. They also
requested that SEPA re-examine what level of efficiencies
could be delivered.
2.4 SEPA has prepared draft specifications
for an external audit of the basis of its cost estimates.
The draft specifications have been issued to the SEPA
Stakeholder Group for comment. A copy of the
specifications will be available for the Executive
Stakeholder Forum.
2.5 The next meeting of the SEPA
Stakeholder Group will discuss the rules for allocating
costs between controlled activities. This clearly
represents a difficult area with the interests of
stakeholders potentially differing. On 29 March there was
some preliminary discussion of the issues:
· Operator performance was considered to be an
important factor for allocating costs
· Charges allocated on the basis of scale of an
activity do not necessarily reflect the level of
environmental risk
· Charges should be linked to the resource
demands which a controlled