Table of contents

11. REPORTING AT RBD/SUB-UNIT LEVEL FOR ECONOMIC ANALYSIS AND COST RECOVERY (SCHEMA RBMPPOM)

Article 5 of the WFD requires Member States to undertake an economic analysis of water uses according to the specifications of Annex III. Article 13 and Annex VII required Member States to send summary reports of the analyses required under Article 5 and Annex II as part of the first RBMP.

Annex III of the WFD stipulates that the economic analysis of water uses should contain enough information in sufficient detail (taking account of the costs associated with collection of relevant data) in order to:

  • Make the relevant calculations necessary for taking into account the principle of recovery of the costs of water services under Article 9, taking into account long term forecasts of supply and demand for water in the RBD and where necessary:
    • Make estimates of the volume, prices and costs associated with water services.
    • Make estimates of the relevant investment including forecasts of such investments.
  • Make judgments about the most cost-effective combination of measures with respect to water uses to be included in the PoMs under Article 11, based on estimates of the potential costs of such measures.

The WFD is the first EU environmental policy that explicitly integrates economic principles (e.g. polluter-pays-principle), economic tools and methods (e.g. cost-effectiveness analysis), and economic instruments (e.g. environmental charges and taxes) into a piece of EU water legislation. This is based on the understanding that economic principles and instruments are potentially important tools in managing the pressures that affect Europe’s waters.

Article 9 of the WFD sets out three general concepts that are closely related but not equivalent, each one imposing specific requirements on economics in general and water pricing schemes specifically:

  • Incentive pricing deals with the way water users pay for their use and whether the right price signals are transmitted, i.e. it addresses the question how water is being paid for and how the water price affects the behaviour of water users.
  • The polluter-pays-principle establishes how environmental costs should be covered among economic agents, i.e. it considers the adequacy of contributions from different agents based on their role in causing these costs.
  • Cost recovery establishes the overall amount that users are charged for water services. The WFD foresees an adequate degree of recovery, not only to the financial costs for the provision of a water service but also of the costs of associated negative environmental effects (environmental costs) as well as forgone opportunities of alternative water uses (resource costs).

The scope of the definition of water services is not fixed, but reflects the activities which result in significant pressures to water bodies in individual Member States. It should be clear that, for the purpose of reporting, Member States are expected to report on that basis and, for those activities which are not subject to cost recovery, a justification should be reported on the basis of Article 9(4). This is in line with the general Union principle of transparency embodied in the Directive via public information and consultation (Article 14) and the need to justify derogations from general rules, while at the same time respecting Member States' margin of discretion in relation to setting programmes of measures under Article 11.

 

comments (0)

Class: EconomicAnalysis

  1. Please include here any comments which apply to all the schema elements in this Class.
  2. In addition to those general schema element level comments, we welcome your views on: a) whether you think this Class can be simplified;  and b) whether you think the linkages with other reporting Classes or Schemas can be improved, and how;

comments (0)

updatedEconomicAnalysis - Required.(YesNoPartially_Union_Enum)

Indicate whether the 2005 economic analysis of water use has been updated. 

comments (0)

economicAnalysisReference - Conditional.(ReferenceType)

Provide references or hyperlinks to the documents and sections where relevant information on the updated economic analysis can be found. Guidance on what should be included in this document is provided in Section 11.2.3. 

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costEffectiveness - Required.(CostEffectiveness_Enum)

Indicate whether a cost-effectiveness analysis has been carried out for supporting the selection of measures proposed under the 2015-2021 PoM, and the general type of assessment carried out.

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costEffectivenessReference - Conditional.(ReferenceType)

Provide references or hyperlinks to the documents and sections where relevant information on the cost effectiveness can be found. Guidance on what should be included in this document is provided in Section 11.2.3.

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serviceArticle94DrinkingWater - Required.(YesNoCode_Enum)

Has WFD Article 9(4) been applied to drinking water abstraction (surface and/or groundwater), treatment and distribution? 

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serviceArticle94Wastewater - Required.(YesNoCode_Enum)

Has WFD Article 9(4) been applied to sewage collection and wastewater treatment? 

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serviceArticle94Irrigation - Required.(YesNoCode_Enum)

Has WFD Article 9(4) been applied to irrigation water abstraction, treatment and distribution? 

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serviceArticle94Selfabstraction - Required.(YesNoCode_Enum)

Has WFD Article 9(4) been applied to self-abstraction? 

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serviceArticle94WaterStorage - Required.(YesNoCode_Enum)

Has WFD Article 9(4) been applied to impoundment and storage of water? 

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serviceArticle94FloodProtection - Required.(YesNoCode_Enum)

Has WFD Article 9(4) been applied to impoundment for flood protection? 

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serviceArticle94Navigation - Required.(YesNoCode_Enum)

Has WFD Article 9(4) been applied to impoundment for navigation?

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serviceArticle94Other - Required.

Report if Article 9(4) is applied to any water service or water service-use combination not covered in the previous questions. More than one other water service or water service-use combination may be reported in the same string. If Article 9(4) is not applied to any other water service or water service-use combination, you should report “None”.

comments (0)

serviceArticle94Reference - Conditional.(ReferenceType)

Provide references or hyperlinks to the documents and sections where justification on the use of Article 9(4) can be found. Guidance on what should be included in this document is provided in Section 11.2.3.

comments (0)

costRecoveryReference - Required.(ReferenceType)

Provide references or hyperlinks to documents and sections where specific information on the application of cost recovery can be found. Guidance on what should be included in this document is provided in Section 11.2.3. 

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Class: Service

  1. Please include here any comments which apply to all the schema elements in this Class.
  2. In addition to those general schema element level comments, we welcome your views on: a) whether you think this Class can be simplified;  and b) whether you think the linkages with other reporting Classes or Schemas can be improved, and how;

comments (0)

service - Required.(ServiceType_Enum)

Select the water services that exist and are recognised in the Member State from the enumeration list. More than one water service may be selected.

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serviceOther - Conditional.

If ‘Other’ is selected from the enumeration list in Service, describe the water service or the water service-use combination. More than one other water service or water service-use combination may be reported. 

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serviceCostInstrument - Required.(YesNoPartially_Union_Enum)

Indicate whether there are legal or regulatory instruments which require cost recovery for this water service. 

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serviceCostInstrumentReference - Conditional.(ReferenceType )

Provide references or hyperlinks to documents and sections where specific information on the legal instruments implementing cost recovery for this water service can be found. Guidance on what should be included in this document is provided in Section 11.2.3.

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serviceVolumetricCharges - Required.(YesNoPartially_Union_Enum)

Indicate whether cost recovery for this water service is based on volumetric charges (i.e. users paying in proportion to the measured use of water). 

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servicePriceLevel - Required.

In case of volumetric charges (serviceVolumetricCharges is 'Yes' or 'Partially'), report the average or range of price levels for this water service in euros per m3.

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serviceFinancialCostIncluded - Required.(YesNoPartially_Union_Enum)

Indicate whether financial costs (investment, operation and maintenance, other financial costs including the costs of capital) are included in the cost recovery for this water service. 

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serviceFinancialCostCalculation - Required.(YesNoPartially_Union_Enum)

Indicate whether the economic analysis includes the calculation of the total financial costs (investment, operation and maintenance, other financial costs including the costs of capital) per year.

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serviceFinancialCostRecovery - Required.

Report the overall recovery of total financial costs (investment, operation and maintenance, other financial costs including the costs of capital) as a percentage of total financial costs for this water service. Report -9999 if this information is not available.

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serviceEnvironmentalCharge - Required.(YesNoCode_Enum)

Indicate whether an environmental charge or tax is applied for this water service. 

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serviceEnvironmentalChargeRevenues - Conditional.

If an environmental charge or tax is applied to this water service, report the total revenue from the environmental charge or tax applied (in millions € or total € per year).

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serviceEnvironmentalChargeRevenuesUnits - Conditional.(RevenuesUnits_Enum)

Report whether the total revenue reported in serviceEnvironmentalChargeRevenues is provided in millions € or total € per year.

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serviceEnvironmentalChargeRevenuesUse - Conditional.(YesNoPartially_Union_Enum)

If an environmental charge or tax is applied to this water service, indicate whether the revenues obtained are dedicated to measures linked to the achievement of the WFD Environmental Objectives. 

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serviceExternalEnvironmentalResourceCost - Required.(YesNoCode_Enum)

Indicate whether the economic analysis includes calculation of external environmental and resource costs for this water service.      

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serviceExternalEnvironmentalResourceCostSignificance - Conditional.(YesNoCode_Enum)

Indicate whether the environmental and resource costs are considered significant for this water service

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serviceExternalEnvironmentalResourceCostInternalisation - Conditional.(YesNoPartially_Union_Enum)

If the environmental and resource costs are considered significant for this water service, indicate whether the environmental and resource costs are already considered internalised through the available instruments.

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serviceExternalEnvironmentalResourceCostJustification - Conditional.

Provide a justification of why environmental and resource costs for this water service they are not considered significant and/or are internalised.

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serviceWaterUseHouseholds - Conditional.(YesNoNotApplicable _Enum)

Are households benefitting from this water service?

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serviceWaterUseAgriculture - Conditional.(YesNoNotApplicable _Enum)

Is agriculture benefitting from this water service?

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serviceWaterUseIndustry - Conditional.(YesNoNotApplicable _Enum)

Is industry benefitting from this water service?

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serviceWaterUseOther - Optional.

If other use than households, agriculture and industry is benefitting from this water service please describe it. More than one other water use may be reported in this field.

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serviceWaterUseContribution - Conditional.(YesNoCode_Enum)

If the water service is relevant for more than one water use (considering as a minimum households, agriculture and industry), indicate whether the economic analysis includes calculations relating to the contribution of each of the water uses to the cost recovery of water services. 

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Guidance on the contents of RBMPs/Background documents

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