United Kingdom
Water Act
The Water Bill has finally received Royal Assent. The Water Act 2003 contains measures to improve the management and conservation of water and also to reform the regulation of the water industry. It is divided into three parts. Part 1 deals with abstraction and impounding and will reform the licensing system by abolishing the current system of exemptions and will introduce a threshold of 20 cubic metres per day above which a licence will be required. In addition, all new abstraction licences will now be time limited. There will be greater powers granted to the EA to enable it to better manage the often-conflicting demands for water and environment protection. The Act will also introduce a new framework for the water industry aimed at improving the quality of service. OFWAT has welcomed the move and is already moving in this direction by appointing a board that includes independent non-executive advisory directors. Designed to protect consumers, these provisions will come into force after April 2005 once OFWAT has completed its price review for 2005-2010. Other provisions in Parts 2 and 3 of the Bill include: measures to encourage competition for water supply to large commercial and industrial consumers; to enable health authorities and local communities to decide whether to have their water supplies fluoridated; stronger powers for the Drinking Water Inspectorate to instigate prosecutions and for magistrates to impose higher fines for supplying unfit water; as well as a range of other miscellaneous provisions.
(SO, November 2003)
OFWAT has issued its plans for engaging with industry in the introduction of competition for water supplies in England and Wales. Under the Water Act 2003, customers with an annual consumption of at least 50 mega litres will be eligible to switch supplier. It is thought that this will commence in autumn 2005.
OFWAT has said that it will use industry advisory groups, a project sponsor group and a regulators co-ordination group, for which an invitation for nominations has been issued and closed on 2 January 2004. OFWAT now plans to hold a series of workshops over the next two years during the implementation process.
(OFWAT, 5 December 2003)
Water Framework Directive
Regulations for transposing the Water Framework Directive (2000/60/EC) came into force on 2 January 2004. The Water Environment (Water Framework Directive) (England and Wales) Regulations 2003 (SI 2003 No 3242) follow the third consultation paper and draft Regulations issued in August 2003. They contain measure for improving the quality of rivers, lakes, estuaries, coastal waters and ground waters. Wetlands will have greater protection and water-related requirements of much EU legislation will also be affected. The aim of the Directive is to integrate water related measures and plans by basing these on river basins. The EA will be required to characterise river basin districts and identify bodies of water used for abstraction. In addition, it will have to prepare and maintain a register of protected areas for each river basin district and establish programmes for assessing water status. It must also submit environmental objectives for each body of water, a river basin management plan for each district and a progress report on the measures to the Secretary of State in England. DEFRA has also produced a timetable for key decisions and actions likely to be taken during the implementation of the Regulations. In order to transpose the Directive for the English/Scottish cross-border river basin, the Water Environment (Water Framework Directive) (Northumbria River Basin District) Regulations 2003 (SI 2003 No. 3245) came into force on 2 January 2004. As the Northumbria River Basin District is partly in England and partly in Scotland, the Regulations adapt and apply the England and Wales Regulations and the Water Environment and Water Services (Scotland) Act 2003 in relation to the whole district to ensure that the Directive’s requirements are met.
(SO, 10 December 2003; DEFRA News Release, 11 December 2003)
Water resources
The EA has commented on water resource plans submitted by water companies as part of the 2004 periodic review. The EA, which has a statutory responsibility for planning water resource, evaluates the plans to determine whether they make adequate provision for customers’ needs while at the same time safeguarding the environment. The view of the EA on the plans was that companies have effective plans in place to combat drought in the short term. However, it said that the purpose of the plans is to make provisions to manage water supply for the next 25 years. As a result, the EA will be advising over half the water companies in England and Wales that their plans require significant amendment before final plans are submitted in April 2004.
(EA News, 12 November 2003)
Pricing
OFWAT has reported on its preliminary analysis of water companies’ draft business plans for the period 2005-2010. The plans say that large price increases may be necessary to maintain improvements in water quality made over the last 15 years, and set out plans for a £20 billion investment. OFWAT says this needs to be justified to customers and that quality regulators should justify major water quality and environmental improvements. The EA has responded by saying that the estimated costs for environmental measures appear to be high and need to be reviewed, and that some plans have failed to include all the measures necessary under legislation. It also disputes the need for big rises in water customers’ bills. WaterVoice has also responded by saying that future improvements to the water environment should not be financed through customers’ bills. Instead, it is calling for environment taxes on water pollution and pesticides to fund environmental improvements.
(EA, WaterVoice and OFWAT Press Releases, 16 October 2003)
The Select Committee on Environment, Food and Rural Affairs has published its conclusions and recommendations on the Periodic Review of water prices. Announcing that it was encouraged by the transparent way in which the review was being conducted, it said that it is confident that Ofwat would conduct a rigorous examination of water and sewerage companies’ plans for future water pricing. Although it stated that companies should not bear all the costs of environmental improvements, they should be responsible for rectifying damage that they are responsible for. The report also calls on the government to take more action on
diffuse pollution.
(Parliament, 18 December 2003)
OFWAT is consulting on possible changes to the Overall Performance Assessment (OPA) and the way in which it could be used during the 2004-2009 Periodic Review of prices. The OPA was first introduced in 1999 and calculates company performance on supply, sewerage, customer service and environmental performance. During the last price review, the OPA was used to assess company performance and those performing best were allowed to charge customers more than those companies with a poorer performance. Therefore, the OPA provides an incentive for improvement in standards and services. Responses to the consultation must reach OFWAT by 2 February 2004.
(OFWAT, December 2003)
Water technology
A website has been set up to provide information on products registered by water technology manufacturers and suppliers meeting water efficient criteria set out in the Water Technology List. The website is useful for manufacturers and suppliers to apply online to have their products included in the list. Any business purchasing products from the list benefit from savings on their water bills and also by being able to claim tax relief on their spending through 100% first year Enhanced Capital Allowances.
(DEFRA News Release, 6 November 2003)
Wetlands and flood management
A paper produced jointly by the EA, DEFRA, English Nature, Forestry Commission and the RSPB examining the relationship between wetlands, land use and flood management has been published. It acknowledges that there are pressures on land use such as conservation and habitat restoration which often conflict with flood management. The paper provides an agreed position statement between the organisations involved and goes on to say that common interests, where identified, should be moved forward together. It also says that integrated approaches and policies will be required in respect of land management, flood management and nature conservation in order to increase the level of wetland habitat. Further research, it says, should include an assessment of the scale of land use and management changes required to achieve this goal. It also recommends circulating the paper amongst the sponsoring organisations and other interested parties to encourage a common basis for future policy development. Another recommendation is that DEFRA should develop revised guidance on biodiversity and flood management to encourage a more integrated approach.
(DEFRA, November 2003)
Agricultural pollution
A study by the EA has come out in favour of awarding grants to farmers to combat diffuse agricultural pollution. Run-off of nutrients, soil and other material from agricultural lands can be a significant source of pollution for waterways and wetlands. It is suggested that by awarding grant aid, pollution risks could be identified and specific practical measures implemented. Among the practical measures identified were basic good practice, voluntary initiatives which go beyond basic good practice and further measures, although this might incur a higher cost. Therefore these further measures would be implemented in priority areas or catchments. A basic plan would provide grant aid to finance soil and nutrient management, the adoption of good basic practice and compliance with existing regulations. A plan plus would be available for proactive advanced planning to achieve rapid change in priority catchments, supported by a catchment appraisal of pollution risk. The view of many regulators
is that such plans would provide an opportunity to meet national and international commitments to dealing
with diffuse agricultural pollution and
reduce the possibility of future implementation problems.
(EA, December 2003)
Bathing water
The Parliamentary Select Committee on the European Union, whose role is to consider EU documents and other matters relating to the EU, has reported on the revision of the Bathing Water Directive (76/106/EEC). The view of the report is that the costs of implementing the Directive, first proposed by the European Commission in October 2002, are very uncertain. There is, it says, a real possibility that the costs to the water industry could be significantly more than is currently estimated. It called for a more stringent financial analysis of cost benefit before the UK government signs up to the proposals. Attempts to revise the Directive have been ongoing since 1994. The new proposals encompass a few significant changes that could have substantial implications for investment in water quality monitoring and water infrastructure. Member States would have to ensure that bathing water meets minimum microbiological and physico-chemical standards and draw up bathing water profiles identifying potential sources of pollution. It is estimated that implementation of the proposal in its current form would reduce compliance by UK bathing waters from 98.5% in 2002 to around only 70%, without the introduction of any further measures to combat pollution.
(House of Lords, 18 November 2003)
Bathing water quality in England reached an all time high in 2003. Out of a total of 411 coastal and freshwater bathing areas, 406 passed the mandatory tests set out in the Bathing Water Directive. Although this represents the sixth consecutive year of improvement, DEFRA says that major improvements are still required if England and the UK are to meet the more stringent standards included in the newly proposed bathing water directive. This is likely to require significant action by farmers and the water industry.
(DEFRA News Release, 4 November 2003)
Water Act - Scotland
The Water Environment and Water Services (Scotland) Act 2003 (Commencement No. 1) Order 2003 (SSI 2003 No 562) brought into force certain provisions of Part 1 of the corresponding Act on 22 December 2003. The Act is the primary instrument for implementing the Water Framework Directive in Scotland and will enable the transposition of the directive within the required timescale. The Scottish Executive is currently consulting on a series of draft regulations for bringing several of the provisions in the Act into effect.
(SO, 20 November 2003)
Oil pollution
Compensation available to victims of oil spills has been significantly improved by the coming into force of the Merchant Shipping (Oil Pollution Compensation Limits) Order 2003 (SI 2003 No 2559) on 1 November 2003. The Order amends the Merchant Shipping Act 1995 to give effect to two resolutions adopted by the International Maritime Organisation in relation to compensation for oil pollution by increasing the specified limits.
(SO, 3 October 2003)
European Union
Oil tankers
A Regulation amending EU Regulation No 417/2002 on the accelerated phasing in of double-hull or equivalent design requirements for single hull oil tankers (No 1726/2003) has been published in the Official Journal. The move was a direct response to the sinking of the Prestige oil tanker off the Spanish coast in 2002. The amending Regulation banned from European ports as of 21 October 2003 single-hulled tankers carrying heavy grades of oil.
(OJL 249, 1 October 2003)
Bathing waters
The European Court of Justice has ordered Spain to pay €624,150 per year for every 1% of inshore Spanish bathing waters that continue to fail to meet the quality standards of the Bathing Water Directive (76/160/EEC). This is only the second occasion on which the ECJ has imposed a fine for an environment offence, the first being Greece which concerned the operation of an illegal landfill site. The judgment follows a Court decision in 1998 that found that Spain had failed to meet the standards in the Bathing Water Directive for a number of inshore bathing waters. Although there has been some improvement in bathing water quality in Spain, the Court decided that improvements were not sufficient.
(European Commission Press Release, 25 November 2003)
Water resources
The World Wildlife Fund is claiming that around two thirds of the 23 countries which it surveyed do not have effective measures in place to address water pollution and over-consumption. The report entitled ‘Water and Wetland Index – Critical Issues in Water Policy across Europe’ concludes that these countries were placing too much emphasis on meeting the demand for water instead of advocating a reduction in use. It goes on to say that without proper management of water consumption, Europe will soon face critical problems of water supply. The report however, did identify the coming implementation of the EU Water Framework Directive as a likely spur for improvement in the quality of water in rivers, lakes and wetlands across the EU.
(WWF, November 2003)
The European Environment Agency (EEA) has published an assessment of progress made in dealing with pollution and over-exploitation of water resources throughout Europe. It says that agriculture plays a large role in both these issues and that enlargement of the EU could lead to further intensification of agriculture, leading to further pressure on water resources in the near future. In its short briefing paper, ‘Status of Europe’s Water’ the EEA point out where progress has been made, such as through EU environmental legislation, and hotspots of specific problems, which most commonly involve nitrate and pesticide pollution or over-abstraction for irrigation, energy use and tourism. Areas of progress include better river quality, with reduced pollution by phosphorous, organic matter, heavy metals and other hazardous substances.
(EEA, November 2003)
Detergents
The European Commission’s Scientific Committee on Toxicity, Eco-toxicity and the Environment (CSTEE) has issued its opinion on the effects of phosphate detergents on watercourses. It contains an analysis of the literature dealing with the issue not addressed during a previous report conducted by the WRc released earlier in 2003. The opinion recommended a combined approach of greatly reducing the amount of sodium tripolyphosphate (STPP), the main phosphate compound in detergents, as well as ensuring a more rigorous implementation of sewage treatment legislation. Furthermore, it says that in some areas, eutrophication will only be resolved by complete elimination of STPP, although even then phosphate fertiliser run-off from agricultural land might pose problems. The use of zeolites, an alternative to phosphates, were seen as a valid way of reducing eutrophication without any adverse effects on the environment. The report also advocated switching from chemical to biological sewage treatment plants, which it said would present a possibility for recycling phosphate for fertiliser use.
(European Commission, November 2003)
