Let's Get Prepared: The New Abstraction Charges Scheme

March 8, 2022

The current abstraction year comes to an end on 31st March. Whilst that’s nothing new, from 1st April the current charging structure for licence applications and annual subsistence charges will change in England. Anyone making an application for a new licence or to vary an existing one should expect to pay much higher application charges. Subsistence charges for water abstraction and impoundments will also change, although most abstractors shouldn’t see a big change in annual fees. 

What to Expect

The big changes relate to the cost of new applications. ‘Same terms’ (i.e., no changes) renewals of existing licences will remain at the current fee of £135. However, for any variations to your licence, and applications for new licences, application charges will be substantially higher.


Why is this change happening?

The implementation of the new charging scheme allows the Environment Agency to recover the costs they incur in assessing and determining licence applications. Whilst we agree the current fee of £135 is insufficient for all but the most straightforward of applications, many applicants will now incur considerably higher costs.


Key Changes

The key changes are:


Application Charges

  • Depending on your application type, the volume of your abstraction, and the availability of water in your catchment, application costs could be as high as £32,955. This will have far-reaching financial implications for many business developments.
  • The Environment Agency may also require additional assessments to support applications in sensitive areas. When additional work is required, such as Habitats Assessments, applications of high public interest or competing schemes, the Environment Agency will also seek to recover their full cost of assessing the application through levying charges in addition to the application fee.


Annual Charges

  • A new set of charging bands based on volume and site-specific water availability is replacing the regional standard unit charge.
  • The impact to most typical abstractors will be fairly modest and the changes will likely benefit abstractors in the South-East and East Anglia.
  • Holders of winter only abstraction licences will see their annual costs increase.

 

Do you require professional support?

If you require support to understand how the changes could impact you and your business, contact us to discuss the details.

About Envireau Water

At Envireau Water, we are a team of expert water scientists and engineers, who provide guidance on the management and regulation of natural water systems across the UK. By working collaboratively with our clients and the regulators, we deliver robust sustainable solutions that meet the requirements of all stakeholders. With an incredibly loyal client base and our ability to work seamlessly throughout the four nations of the UK, many of our clients know us individually and trust us to find resolutions to their water problems for years to come.


Connect with us on LinkedIn to hear the latest industry developments and updates regarding our team.


Envireau Water is an RSK Group Company.

Share

Recent Environment Agency Updates

By Rachael Plant • April 8, 2025
Since December 2024, the Environment Agency (EA) have released a series of flood and coastal erosion risk assessment updates, offering a clearer, more comprehensive picture of both current and future flood risk across England. What makes these updates so important? With approximately 6.3 million properties in England at risk of flooding and 3,500 properties at risk of coastal erosion by 2055, these updates are absolutely critical in order for you to protect and enhance your developments against the threat of climate change and extreme weather events. Whether a commercial or residential development, Envireau Water specialise in flood risk management and sustainable drainage solutions across the UK. By leveraging our technical expertise and deep knowledge of the UK regulatory system, we are known for achieving a positive outcome for even the most complex of challenges. Keep reading to find out what these updates mean for you.

World Water Day 2025

By Rachael Plant • March 21, 2025
Climate change is an urgent issue we cannot ignore, and requires the collective action of communities across the globe if the worst effects are to be mitigated. From rising sea levels, extreme weather events to a loss of biodiversity, the potential impacts are widespread. However, this world water day, the focus is rightly on glacial preservation - our planet's largest natural freshwater reservoir. Why is it important? At Envireau Water, we recognise the widespread impact that glacial meltwater has across the whole planet, leading to the escalation of more extreme weather events as a result. Not only does this impact the environment with the disruption of ecosystems and water cycles, but also has a profound impact on society and industries reliant on a stable water supply. As a team of water scientists, we have witnessed first-hand the undeniable impact that flooding and drought events have had on the mineral, agricultural, industrial and development sectors, from failing crops and flooded farmland to a halt in distilling operations and delayed development projects, the ripple effects of these events are felt across communities and businesses alike.

Setting up for Regulatory Success

By Rachael Plant • March 18, 2025
It is safe to say that Envireau Water have had a long line of success stories over our years of operation across our four sectors of expertise, with permitting and licensing being just one of our many service offerings. So, what has fuelled our success? To get some insight, we turned to our Specialist Water Resources team for their perspective. Penny , can you expand on Envireau Water's success in this area? 'Water is a vital resource across many industries, without which they would not be able to operate effectively. However, this does not come without certain regulatory constraints, which must be abided by. That's where we come in.
Show More

Recent Environment Agency Updates

By Rachael Plant • April 8, 2025
Since December 2024, the Environment Agency (EA) have released a series of flood and coastal erosion risk assessment updates, offering a clearer, more comprehensive picture of both current and future flood risk across England. What makes these updates so important? With approximately 6.3 million properties in England at risk of flooding and 3,500 properties at risk of coastal erosion by 2055, these updates are absolutely critical in order for you to protect and enhance your developments against the threat of climate change and extreme weather events. Whether a commercial or residential development, Envireau Water specialise in flood risk management and sustainable drainage solutions across the UK. By leveraging our technical expertise and deep knowledge of the UK regulatory system, we are known for achieving a positive outcome for even the most complex of challenges. Keep reading to find out what these updates mean for you.

World Water Day 2025

By Rachael Plant • March 21, 2025
Climate change is an urgent issue we cannot ignore, and requires the collective action of communities across the globe if the worst effects are to be mitigated. From rising sea levels, extreme weather events to a loss of biodiversity, the potential impacts are widespread. However, this world water day, the focus is rightly on glacial preservation - our planet's largest natural freshwater reservoir. Why is it important? At Envireau Water, we recognise the widespread impact that glacial meltwater has across the whole planet, leading to the escalation of more extreme weather events as a result. Not only does this impact the environment with the disruption of ecosystems and water cycles, but also has a profound impact on society and industries reliant on a stable water supply. As a team of water scientists, we have witnessed first-hand the undeniable impact that flooding and drought events have had on the mineral, agricultural, industrial and development sectors, from failing crops and flooded farmland to a halt in distilling operations and delayed development projects, the ripple effects of these events are felt across communities and businesses alike.

Setting up for Regulatory Success

By Rachael Plant • March 18, 2025
It is safe to say that Envireau Water have had a long line of success stories over our years of operation across our four sectors of expertise, with permitting and licensing being just one of our many service offerings. So, what has fuelled our success? To get some insight, we turned to our Specialist Water Resources team for their perspective. Penny , can you expand on Envireau Water's success in this area? 'Water is a vital resource across many industries, without which they would not be able to operate effectively. However, this does not come without certain regulatory constraints, which must be abided by. That's where we come in.

Achieving Nutrient Neutrality

By Rachael Plant • March 11, 2025
Achieving nutrient neutrality is a challenging task, and is one that developers all over the country have battled to achieve over the last 5-6 years. In March 2022, Natural England issued a directive to Local Planning Authorities, County Councils, the Environment Agency, the Planning Inspectorate, Natural Resources Wales, and DLUHC stating that, in specific river catchments, developments should not be permitted if the LPA cannot definitively ensure that it will not adversely impact protected environmental sites due to increased levels of nitrate and/or phosphate. While the current approach is efficient, robust, and objective, it can also be slow, costly, and overly complex—leading to potential project delays and increased expenses for housing developers. To address these challenges, the government released the Planning Reform Working Paper in December 2024. This initiative aims to unlock approximately 28,000 homes across seven areas in England that had been stalled due to nutrient neutrality concerns, backed by £47 million from the Local Nutrient Mitigation Fund.
Show More