Water companies could be forced to pay thousands of pounds more every year for sewage effluent discharges.
Companies face being hit with increased permit costs of between 67% and 547% for sewage effluent discharges, under proposals put forwards by the Environment Agency.
The government’s environmental regulator said the increases are necessary to regulate the industry, as public attention on polluted waterways swells.
Permit charges are relative to volume of discharges. Companies with a discharge volume over 500,000m3 per day can expect to pay 67% more with their annual permit rising to £170,000, up from £102,000.
Permits for smaller volumes will have larger percentage rises, but from lower starting costs for the permit.
For example, the cost of a permit to release 5m3 of effluent a day is set to soar by 547% from £251 to £1,624.
The regulator will raise the charges on water quality permits, subject to consultation, to cover the full costs of its activities.
It proposed introducing new subsistence charges for permits relating to sewerage activities and wastewater treatment. This, the Environment Agency said was to fund “an improved approach to regulation of the water industry”.
The regulator pointed to inflationary rises since 2017 impacting its ability to regulate, but neglected to refer to budgetary cuts that have slashed its funding.
Last year, former chief executive James Bevan admitted to a parliamentary committee that funding meant the agency was unable to properly regulate water companies. The Agency’s core grant from government was around £120 million in 2010/11, which Bevan said “progressively diminished” to £55 million in 2021. It has now been partially restored to £96.5 million.
The Environment Agency issues permits for water quality requirements relating to discharge and groundwater to manage risks around wastewater treatment and other activities that may impact watercourses and the surrounding environment.
The organisation charges annual fees for permits to cover costs of regulating and compliance, as well as a one-off application fee.
Under the Environment Act, the Agency has extra duties for regulating water companies, which largely relates to reducing storm overflow discharges. Wastewater companies are obliged to publish data on spills annually and near real-time information on overflows in their region.
Wastewater companies will feel the weight of 11 new charges, which include sewage effluent and intermittent for sewerage undertakers. The Environment Agency said other sectors it regulates including agriculture, manufacturing, industry and hospitality will not pay more.
The consultation runs to March, with changes anticipated to come into effect in the spring this year, EA said.