Environmental protection

Water Framework Directive - Article 5 economic analysis

Research and the Collaborative Research Programme

Completed research projects

The Economics Steering Group (ESG) and the Economic Advisory Stakeholder Group (EASG) have commissioned three initial research projects which reported in May 2004. A further report on Private Water Services has also been completed.

Economic importance and dynamics of water use

Scoped the economic analysis of water uses in England and Wales and provides input into the baseline analysis for characterisation.

Cost recovery and incentive charging

Reports on the current levels of cost recovery of the costs of water services in England and Wales.

Cost effectiveness analysis and developing a methodology for assessing disproportionate costs

Scopes out alternative methodologies for conducting the CEA and makes suggestions on their implementation.

Review of Private Water Service

This study reviewed the available information in relation to private water services in the context of reporting on levels of recovery of the costs of water services.

  • Main report (available shortly)
  • Annexes (available shortly)
  • A scoping study (PDF 200 KB) for the economic analysis

Workshops on the Water Framework Directive economic analysis

The Water Framework Directive Economic Analysis Workshop was held in London on 24 and 25 March 2004. The workshop was organised by ERM on behalf of Defra.

The workshop provided an opportunity for peer reviewers and other stakeholders to discuss the outcomes of the three WFD economic analysis studies that are underway, and to highlight key issues and draw conclusions about what needs to be done in order to meet the UK's requirements for Article 5 reporting in 2004/5. A note summarising the outcomes of the workshop is available:

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Collaborative Research Programme

A collaborative programme for research for the post Article 5 work on the economic analysis for the WFD has been established. A major work programme started in 2004 and will run till 2008, eventually providing the tools necessary for the economic analysis for River Basin Management plans.

Current and future outputs from the Collaborative Research Programme:

Project

Terms of reference

Executive Summary

Main report

Annexes

Project 1a – Economic Analysis and Decision Making for Programme of Measures under the Water Framework Directive – Initial Identification of Processes and Issues

 

n/a

Exec Sum 1a
(PDF 100 KB)

On request due to large file size

On request due to large file size

Project 1b - Consistent Economic Appraisal Approaches with respect to the Water Framework Directive River Basin Management Plans

 

TOR 1b
(PDF 30 KB)

n/a

Due 2007

Due 2007

Project 1c - Screening of water pricing policies, cost recovery mechanisms and economic instruments for inclusion in Programme of Measures and in relation to Article 9 of the WFD

 

TOR1c
(PDF 35 KB)

n/a

Main report
(PDF 450 KB)

Annexes
(PDF 900 KB)

Project 2a/2b Developing a methodology to assess and compare the cost effectiveness of the main pollution control measures across sector

 

TOR 2a
(PDF 40 KB)

TOR 2b
(PDF 80 KB)

Executive Summary
(PDF 250 KB)

Part A: Introduction
(PDF 300 KB)
Part B: Effectiveness
(PDF 550 KB)
Part C: Costs
(PDF 400 KB)
Part D: CEA
(PDF 150 KB)

Annex
(PDF 3 MB)

Project 2c Estimating Approximate Benchmark Costs of the Main Measures Across the Main Sectors

 

TOR2c
(PDF 40 KB)

n/a

Final report
(PDF 2.8 MB)

Excel documents available on request

Project 2d Development of Peer Reviewed Tailored Pro formas for Deriving Cost Estimates for Individual Sectors

 

TOR 2d
(PDF 60 KB)

n/a

Due 2007

Due 2007

Project 2e Deriving the Costs and Effectiveness of Delivery Mechanisms

n/a

n/a

Final report
(PDF 1.11 MB)

Excel documents available on request

Project 3 - Scoping and characterising contentious options and their key benefits and assess, test and develop appropriate assessment systems

 

TOR3
(PDF 45 KB)

n/a

Main report
(PDF 200 KB)

Due 2007

Project 4 - Analyses to specify environmental benefits

 

Due 2007

Due 2007

Due 2007

Due 2007

Project 5 - Guidance on Assessment for RBMPs

 

Due 2007

Due 2007

Due 2007

Due 2007

Project 6 - New benefits valuation studies

 

Due 2007

Due 2007

Due 2007

Due 2007

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Other projects

TRAC scoping report

 

Ofwat work on costs

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Further information

Page last modified: 5 September 2006
Page published: 23 March 2001

Department for Environment, Food and Rural Affairs