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Water resources and abstraction

Introduction

Defra and the Welsh Assembly Government have policy responsibility for water resources in England and Wales. There is the need to effectively manage water resources, as there is increasing pressure on water brought about by changes in societal demand, population increase and changing household patterns, and by climate change.

The Government's approach to the management of water resources is the "twin track" approach as re-affirmed in our strategy for water Future Water. This approach to sustainable water resource management involves the consideration of demand management alongside sustainable resource development.

The Environment Agency, a non-departmental body sponsored by Defra and the National Assembly for Wales, has a duty to secure the proper and efficient use of water resources in England and Wales. The principal means of achieving this is through the abstraction licensing system. Through this system the Environment Agency aims to achieve a balance between the requirements of abstractors and adequate protection of the environment against the impacts of abstraction. Over abstraction of water can create environmental problems such as low river flows, which can threaten the survival of flora and fauna dependent upon those waters.

Water resources planning

In 2001, the Environment Agency published Water Resources for the Future - a Strategy for England and Wales, which is a key part of the framework of integrated water resources planning carried out by the Environment Agency and water users, particularly the water companies. The publication considers both national and regional water resource strategies, which are reviewed annually. These strategies set out pressures on water resources and how the Environment Agency expects these to be managed over the next 25 years.

All water companies have water resource management plans which look ahead 25 years and include projections of current and future demands for water. These plans are regularly updated to account for factors such as projections of household numbers and occupancy rates and the implications of climate change. These plans, which complement the Environment Agency's strategies, were prepared voluntarily until 1 April 2007 when they become a statutory requirement under provisions in the Water Act 2003.

The Water Resources Management Plan Regulation 2007 sets out the steps a statutory water undertaker must follow with respect to publication and consultation of a draft water resources management plan, and the publication of its final plan. The first set of draft water resources management plans are expected to be consulted upon in Spring/Summer 2008

The Water Resources Management Plan Direction 2007 details what information the water resources plans should include and the timetable for submission were sent to each water company. The Environment Agency prepared detailed guidance for water companies on the content of water resources plans and timings for the completion of each stage of the process.

The Water Resources Management Plan (No.2) Direction 2007 is the vehicle by which water companies in England are required to look at the costs and benefits of compulsory metering in their plans. Metering will then be considered alongside and compared with the other measures in companies’ water resource management plans.

After the final water resources management plan is published it will be reviewed annually by the water company; if there is a relevant material change in circumstances then the water company must submit a revised plan within six months from when the change occurred. The Secretary of State can also direct a water company to submit a revised plan if required, after consulting with the Environment Agency.


Pressures on water resources in the south-east

The additional housing growth envisaged in the south-east needs careful planning to ensure that development does not proceed ahead of secure water supplies.

New demands for water can be significantly reduced through the installation of water efficient fittings and appliances in new homes and work places.

The extent to which new water resources (e.g. new or enlarged reservoirs, pipeline transfers) need to be developed will therefore depend on the extent to which new build incorporates efficiency measures. The Environment Agency is working closely with the water companies and development agencies to ensure that sustainable solutions are achieved both in the south-east and in other areas of the country where sustainable communities are planned.

Abstraction licensing - background

One of the ways that the Environment Agency manages water resources is through a system of issuing licences for abstracting water, which they have had in place since the 1960s. Their duties include the regulation of water abstraction from sources of supply including rivers, lakes, canals and underground sources through a system of licensing, to minimise damage to the environment.

In May 1997 the Government held a Water Summit with water companies, the Environment Agency and key stakeholders. The most important point from the Summit, in terms of water resources, was that there should be a review of the abstraction licensing system. After more than 35 years, problems had become apparent with the current licensing system, originally derived from the Water Resources Act 1963, for example over-licensing, licences issued in perpetuity and the need for flexibility given future uncertainties such as the effects of climate change.

Following the Water Summit, the Government issued a consultation paper The Review of the Water Abstraction Licensing System in England and Wales in June 1998 proposing a number of administrative and legislative changes to the water abstraction licensing system in England and Wales.

Taking Water Responsibly was published in March 1999, which announced the Government's decisions following the 1998 consultation. Many of the announced changes could be implemented within current legislation (Water Resources Act 1991 and Environment Act 1995), but others needed legislative changes.

Non-legislative changes

The non-legislative changes that have been taken forward by the Environment Agency, following Taking Water Responsibly are below:

Restoring Sustainable Abstraction Programme

Following Taking Water Responsibly, the Government instructed the Environment Agency to use its powers to revoke damaging licences. The Restoring Sustainable Abstraction (RSA) Programme was set up by the Environment Agency in 1999 to identify and catalogue those sites which may be at risk from abstraction. The RSA programme is a way of prioritising and progressively examining and resolving these concerns. As part of this programme, the Agency has been investigating sites that are affected by the EC Habitats Directive, Sites of Specific Scientific Interest in addition to local sites.

Economic Instruments

Following Taking Water Responsibly it was decided that there should be a separate consultation concerning the application of economic instruments as a measure of abstraction control. The consultation paper Economic Instruments in Relation to Water Abstraction was issued in April 2000. The analysis of the responses to the consultation were published in Tuning Water Taking. The consultation addressed two main areas, which were water abstraction charges and abstraction licence trading.

Water rights trading is the transfer of licensable water rights from one party to another, for benefit. Under current legislation some water rights trading is possible, and the Water Act 2003 contains provisions that will remove barriers to trading. The Environment Agency has recently consulted on its suggested approach to trading and will implement revised guidance in conjunction with the implementation of the relevant provisions of the Water Act 2003.

Catchment Abstraction Management Strategies

The Environment Agency is developing Catchment Abstraction Management Strategies (CAMS). The Environment Agency launched the CAMS process in April 2001 for every catchment in England and Wales. CAMS provide a consistent and structured approach to local water resources management, recognising the reasonable needs of abstractors and the needs of the environment. This fits in with the needs of the Water Framework Directive, which requires a regular review of abstraction and impounding licences. CAMS enable the consideration of how much water can be abstracted from watercourses without damaging the environment. They will provide more local detail on the availability of water, and will allow a detailed assessment of where action may be needed to deal with problems of over abstraction.

Legislative changes

Water Act

The legislative changes, recommended by Taking Water Responsibly were included in the Water Act 2003. The Act strengthens the Environment Agency's powers for the sustainable management of water resources. Key changes include:

  • Time limits for all new abstraction licences
  • Facility to revoke abstraction licences causing serious environmental damage without compensation
  • Greater flexibility to raise or lower licensing thresholds
  • Small and environmentally insignificant abstractions deregulated
  • Licensing extended to abstractors of significant quantities presently outside the licensing system
  • Water company drought plans and water resource management plans (both currently produced voluntarily) to become a statutory requirement.

  • Water Act 2003
The Water Resources (Abstraction and Impounding) Regulations 2006

These regulations, specify new procedural requirements in respect of the licensing of abstraction and impounding of water in England and Wales.

The Water Resources (Environmental Impact Assessment)( England and Wales)(Amendment) Regulations 2006 [SI 2006 No. 3124]

These regulations amend the Water Resources (Environmental Impact Assessment)(England and Wales) Regulations 2003 to transpose into law the requirements of the Public Participation Directive insofar as that Directive amends the Environmental Impact Assessment Directive. The 2003 regulations apply to certain water management projects for agriculture which are subject to regulation under abstraction and impoundment controls.

Water Framework Directive

Changes to the abstraction and impounding regime through the Water Act 2003 will further our ability to meet the requirements of the Water Framework Directive.

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Page last modified: 24 September 2008
Page published 25 October 2005

Department for Environment, Food and Rural Affairs